Just 24 hours after deciding to quit the European Union, the U.K. is already starting to absorb the financial ramifications of its shock decision.
Late Friday night, after the U.K. suffered a bruising day on the world's market's, U.S. ratings agency Moody's announced that it had lowered its outlook on the country's credit rating from stable to negative. If a negative outlook turns into a ratings cut, it could put upward pressure on the country's long-term borrowing costs.
In a statement, Moody's warned that the U.K. vote to leave the EU "will herald a prolonged period of uncertainty for the UK, with negative implications for the country's medium-term growth outlook."
The agency also warned that the expected protracted renegotiation of the U.K.'s trade and economic relations with Europe and the rest of the world would lead to " heightened uncertainty, diminished confidence and lower spending and investment to result in weaker growth."
"Over the longer term, should the UK not be able to secure a favorable alternative trade arrangement with the EU and other countries, the UK's growth prospects would be materially weaker than currently expected."