S&P affirms UK rating at AA/A-1+; outlook remains negative on "Brexit uncertainties"
|Ratings agency S&P affirmed the United Kingdom rating at "AA/A-1+", but the outlook remains negative because of Brexit uncertainties. Also, S&P states that current outlook reflects institutional, economic uncertainty surrounding Brexit negotiations and what arrangements will emerge post-departure.
Key headlines (via Reuters):
- See heightened risks of deterioration in external financing conditions in light of the U.K.'s high gross external financing requirements
- Leaving the EU will also significantly diminish the U.K.’s capacity to influence EU policy on key sectors of the U.K. economy
- Also think Brexit could create challenging constitutional issues if it results in a second referendum on Scottish independence
- Brexit could also, over time, diminish sterling’s role as a global reserve currency
- Still view U.K.’s high external deficit as a vulnerability, and view an EU departure as a risk to financing sources
- UK-take the view that Scottish national party will push for another referendum on Scottish independence
- UK-given Brexit uncertainties and the likely fall in investment, forecasting a slowdown in 2017-2019
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.