S&P and Fitch warn UK still faces no-deal Brexit risk

cde.news desk 27 April 2019, 05:35 · 1 min read

epa03912776 An exterior view of the offices of Fitch Ratings in New York, New York, USA. Democratic and Republican Senate leaders on 16 October announced a deal to raise the US debt limit ahead of the 17 October deadline and reopen the federal government, which has been closed since 01 October. The uncertainty over the way forward earlier on 16 October had prompted Wall Street ratings agency 'Fitch Ratings' to warn that the country's AAA credit was at risk. EPA/ANDREW GOMBERT

Ratings agencies S&P Global Ratings and Fitch Ratings kept open the possibility of a further cut to Britain’s credit status because of the continued risk of a no-deal Brexit, despite a recent delay to the deadline for Britain’s departure from the European Union.

Fitch warned that the agreement between the EU and the UK to further extend the process outlined in Article 50 of the Treaty on European Union to 31 October 2019 reduces but does not eliminate the risk of a ‘no-deal’ Brexit over the next six months.

S&P said its negative outlook reflected the risk of sustained economic weakness and a hit to government finances if Britain lost access to EU markets, external investors took fright or sterling’s status as a reserve currency came under pressure.

Fitch and S&P both have a AA rating on British government debt.

Via Reuters

Filed under Brexit Financial News UK

Topics Article 50 BREXIT Fitch S&P UK

S&P and Fitch warn UK still faces no-deal Brexit risk

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