BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - U.K. stocks fell on Monday after ratings firm Moody's on Friday signaled it is poised to downgrade the credit rating on Britain's government debt.
The ratings agency changed the outlook on its Aa2 rating on the debt issued by the U.K. government from 'stable' to 'negative' saying that Brexit has triggered an 'erosion in institutional strength' that threatens the nation's financial credibility.
Meanwhile, the pound rose against the dollar and euro on expectations that GDP data due out later in the day will show Britain escaped a recession.
The benchmark FTSE 100 was down 41 points, or 0.56 percent, at 7,318 after declining 0.6 percent on Friday.
Greggs, the largest bakery chain in the U.K., soared 16.5 percent after upgrading its profit guidance for 2019.
AstraZeneca gained around 1 percent as equities researchers at Jefferies Financial reaffirmed their 'hold' rating on the stock.
Funeral provider Dignity lost 2.4 percent after the company reported a 30 percent fall in underlying operating profit for the year to date.
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