Fitch gives Berlin top rating: Moody's downgrades outlook for Great Britain

High political uncertainty and gloomier growth prospects could make it more difficult for London to take on new debt.

Fitch gives Berlin top rating: Moody's downgrades outlook for Great Britain

High political uncertainty and gloomier growth prospects could make it more difficult for London to take on new debt. The US agency Moody's is following other industry heavyweights with the downgrade of the country. In contrast, competitor Fitch confirms Germany's top grade.

The rating agency Moody's has lowered the outlook for Great Britain to "negative" from previously "stable". This threatens the kingdom with a downgrade in the near future and, as a result, more expensive loans. The rating of the long-term foreign currency bonds will initially remain at "Aa3", the agency announced. Moody's thus certifies that the country has a good credit rating with a high probability of payment.

The reason for the change in outlook is political uncertainty amid high inflation and weaker growth prospects. Prime Minister Liz Truss announced her resignation on Thursday after around six weeks in office in the face of massive criticism. Recently, the other two US agencies Fitch and S

Meanwhile, Germany can continue to rely on its top credit rating despite the energy crisis. The rating agency Fitch confirmed the German top grade "AAA" and does not expect any deterioration in the future. The outlook is stable, said the credit checkers. The Federal Republic thus remains one of the most creditworthy countries in the world. This means that Germany can continue to take out debt on preferential terms in the future.

The rating reflects Germany's broad-based economy and solid finances. Europe's largest economy has also rapidly diversified its energy sources and reduced energy consumption. According to the agency, the job market will remain robust despite high inflation and the Ukraine war.