Moody’s and Standard&Poor’s has assessed the consequences of Brexit

Britain’s decision to withdraw from the European Union will lead to a long period of uncertainty, which will put pressure on economic growth and financial indicators of the country, the report says the rating Agency Moody’s, published on Friday, 24 June.

“Immediate market reaction has shown itself in a sharp depreciation of the pound and the fall in world stock markets. Increased uncertainty about the course of negotiations about the new agreement between the UK and the EU are likely to reduce the flow of investment and the level of consumer and business confidence in the UK, which will affect the growth prospects of the country,” explains Moody’s analyst Colleen Ellis.

He notes that the rating Agency does not have serious negative consequences for the credit ratings of many issuers from the European Union. The baseline scenario, Moody’s assumes that the EU and the UK in the negotiations will be able to keep most of the current trade agreements.

Potential credit risks associated with the Brexit, apply not only to the sovereign rating of the UK. In the nonfinancial corporate sector from the potentially high trade barriers and reducing the volume of sales may be affected automakers and food manufacturers. And telecommunication companies, airlines and pharmaceutical sector is exposed to regulatory risks noted in the review.

“The results of a referendum held on 23 June, can increase the risk of political fragmentation within the EU,” warns Ellis.

Earlier, the chief analyst at rating Agency Standard&Poor’s Moritz Kramer told a reporter for the Financial Times that “considers it a rating of great Britain at level AAA unjustified in the light of new circumstances.”