Fitch and Standard & Poor’s rating agencies scaled back on their warnings regarding Britain’s new credit downgrade Fitch and Standard and Poor’s rating agencies scaled back on their warnings regarding Britain’s new credit downgrade and they attribute this to Prime Minister Boris Johnson’s landslide election win from last week as it brought down next month’s risk of a no-deal Brexit.
Fitch removed Britain from the negative rating watch list, the broader outlook remains negative though. A cliff-edge Brexit risk by the end of the year remains expected.
S&P, on the other hand, raised the country’s outlook from negative to stable. They also expect a no-deal Brexit by year-end will be avoided by London requesting more time.
Last week, Johnson and the Conservatives won with a larger than expected parliamentary victory, the only thing left to be seen is whether the Brexit decision will happen- it’s scheduled for Jan 31st.
“Despite the government’s current stance, we expect that the UK will seek, and the EU will grant, an extension beyond December 2020 to negotiate the future relationship between the two,” the ratings agency said.
(Photos syndicated via Reuters)
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