A global credit ratings agency has changed the Isle of Man's status.

Moody’s Investors Services has downgraded the island’s rating to Aa2 from Aa1.

But it has also changed the Isle of Man’s outlook to ‘stable’ from ‘negative’.

Treasury Minister Alfred Cannan MHK said the decision to revise the Isle of Man Government’s bonds rating was ’not unexpected’.

The announcement follows Moody’s recent downgrade of the United Kingdom Government’s rating to Aa2 in response to the UK’s weakening public finances and the economic uncertainty following the decision to exit the European Union.

Moody’s said that in its view the Isle of Man Government’s credit risks was strongly linked to those of the UK.

The Treasury Minister said: ‘The adjustment of the island’s bond rating comes as no surprise given that the UK’s rating had already been revised

’It also reflects the changing global environment and is part of the reassessment process being experienced by many countries around the world.’

He added: ‘It is reassuring to note that Moody’s recognises the strength of the Isle of Man’s public finances and the fact that we do not borrow money to fund revenue spending. The agency also commends the government’s prudent management of its finances and forward-looking fiscal policies.

’I believe the resilience and diversity of the Manx economy will stand us in good stead for the future as we seek to maintain the island’s reputation as a special place to live and work.’

Being downgraded can have an impact on a country’s ability to borrow money on the markets. Investors see it as a riskier bet and demand higher returns to lend to governments.