Fitch downgraded the UK after Brexit


The sovereign rating of the UK downgraded from AA+ to AA, said in a statement Fitch. The Agency announced a negative Outlook for the further change in the rating.

Fitch notes that the outcome of the referendum on 23 June will have a negative impact on the UK economy, the financial system of the country and political stability.

According to experts Fitch, the results of the referendum will affect the decline in GDP growth and the investment climate. Fitch indicated that the uncertainty of the adverse effect of Brexit GDP in 2016 amounted to 1.6% compared with the previous forecast of 1.9% in 2017 and 0.9% in 2018 and 0.9%.

In the medium term, economic growth will also be less predictable because of less favorable export conditions to EU countries, reduction of migration and reduce direct investment from abroad, says Fitch.

The Agency stressed that the situation in the medium term will largely depend on future trade agreements between the UK and the European Union.

Will affect the further development also the resignation of the Prime Minister, David Cameron, and the situation in Scotland, which warned of a possible new referendum about independence of this region.

Earlier, rating Agency S&P downgraded Britain’s credit rating at once on two lines: from the highest AAA to AA with negative Outlook.