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