Rating agency Moody's has slashed the London Stock Exchange's investment grade rating to two notches above ‘junk' as it proceeds with plans for a share buyback following Nasdaq's failed takeover bid.

Moody's said yesterday it cut the LSE's senior debt ratings by one notch from Baa1 to Baa2, citing the completion of a share buyback worth £300m (€448m) in total by the end of September as the reason.