Moody’s Investors Service cut the United Kingdom’s sovereign-debt rating further on Friday, citing weakening economic and fiscal strength exacerbated by the government’s inability to reach a deal with the European Union.

The credit-rating firm reduced the UK’s rating one notch to Aa3 with a stable outlook, saying the economic outlook has worsened since Moody’s downgraded the country’s credit rating to Aa2 in September 2017.