The ratings agency however warned the country of the “formidable and rising challenges” it faces.
Weakness in the eurozone could hold back growth and weaken the government’s debt-cutting plans.
The report said the UK had strong long-term economic fundamentals and institutional and government financial strength.
But it said: “A need to support the banking system could temporarily set back the government’s fiscal consolidation efforts.
“As a result the outlook on the rating is likely to be sensitive to future developments in the euro area’s debt crisis even though the UK is not a member of the monetary union.”
Moody’s, along with Standard & Poor’s and Fitch, are the most influential rating agencies and a downgrade by one or all of them can drive up a country’s borrowing costs.
