Moodys downgraded the UK's sovereign rating - Scotiabank

Analysts at Scotiabank explained that Moody’s downgraded the UK’s sovereign rating to Aa2 Friday to round off a fairly disappointing day for PM May

Key Quotes:

"Moody’s downgraded the UK’s sovereign rating to Aa2 Friday to round off a fairly disappointing day for PM May following her Florence Brexit “reboot” speech which seemed to do no such thing. 

Moody’s cited weaker UK public finances and the erosion in medium-term economic strength which will likely result from the leaving the EU as the justification for the downgrade. 

Sterling has steadied, with BoE policy risks anchoring downside risks for the pound for now. BoE Gov Carney speaks Thursday."