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Britain says Moody's downgrade based on 'outdated' Brexit view

  • Moody's cut Britain's sovereign credit rating to 'Aa2' with a stable outlook from 'Aa1.'
  • The U.K. government said Moody's view is based on an outdated Brexit assessment.
  • Prime Minister Theresa May gave a speech in Italy setting out her wish for a transition period of around two years after Britain leaves the EU in March 2019.
Prime Minister Theresa May leaves Downing Street on her way to attending Prime Minister's Questions in the Houses of Parliament on June 28, 2017 in London, England.
Leon Neal | Getty Images
Prime Minister Theresa May leaves Downing Street on her way to attending Prime Minister's Questions in the Houses of Parliament on June 28, 2017 in London, England.

Britain's government said on Friday that a decision by ratings agency Moody's to downgrade the country's credit rating was based on an "outdated" assessment of its plans to leave the European Union.

Moody's lowered Britain's sovereign credit rating to 'Aa2' with a stable outlook from 'Aa1.'

"The assessments made about Brexit in this report are outdated," a government spokesperson said in a statement provided by the finance ministry.

Earlier on Friday, Prime Minister Theresa May gave a speech in Italy setting out her wish for a transition period of around two years after Britain leaves the EU in March 2019.

"The Prime Minister has just set out an ambitious vision for the UK's future relationship with the EU, making clear that both sides will benefit from a new and unique partnership," the government spokesperson said.

"We have made substantial progress in reducing the deficit while finding extra money for the National Health Service and social care at the same time. We are not complacent about the challenges ahead but we are optimistic about our bright future," the spokesperson added.