Moody's cited the UK's "more conciliatory" approach to EU trade and Chancellor Jeremy Hunt's reversal of most tax cuts as factors in their decision. Brexit-related friction had slowed the UK's efforts to reduce inflation, but Moody's expects it to return to its 2% target by 2026.
Credit ratings agencies assess a country's ability to repay its debts, impacting interest rates. Moody's gave the UK its highest rating until 2013, but downgraded it during George Osborne's chancellorship.
Fitch, the third major rating agency, maintains a negative outlook for the UK, with its next assessment due in December.