Brexit negatively affects United Kingdom’s creditworthiness

Britain still faces a great deal of uncertainty in connection with preparing for leaving the EU and that also brings negative effects to its creditworthiness evaluation. Moody’s, an international rating agency, stated this news today.

“A significant uncertainty remains around the final form of Brexit, which will probably impact decision-making regarding expenditures, investments and employee recruitment,” stated Colin Ellis from Moody’s.

On Tuesday night, Britain’s Parliament refused to accept government’s time schedule, according to which the Members of Parliament should have finished discussions around the law describing Brexit conditions till Friday. The government then stopped the legislative process. At the moment it is almost impossible for Britain to leave EU in the current date as set in the separation agreement. During the weekend, British Prime Minister Boris Johnson has sent a request to Brussels to postpone Brexit date by 3 months.

Britain is currently evaluated by Moody’s with third highest credit rating Aa2 and with a stable outlook. The agency decreased rating from Aa1 onto the current level in September 2017. Its decision was then supported, among others, by concerns from economic impact of Britain leaving the EU.


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