Wednesday , April 21 2021

THIS 1 GB-negative look or oversight in Fitch and S & P

(Updated with details)

April 26 (Reuters) – Rating of Fitch Ratings published AA ratings with a rating-time negative rating (RWN), while Standard & Poor's confirmed its AA rating, whose perspectives remain negative .

The ranking agency, Fitch, said the monitoring, which was decided on February 21st, "reflects the risks associated with a chaotic exit from the EU, which will have negative consequences for the UK's trade, investment and economic prospects. medium term ".

In particular, the extension agreement of October 31 of the procedure under Article 50 of the Lisbon Treaty between London and Brussels reduces, but does not eliminate the risk of Brexit without a contract in the next six months, the agency said, which also notes that the holding of European elections will additionally exacerbated political divisions across the Channel.

S & P notes that the uncertainty continues in relation to London's future relations with the EU, its main trading partner.

Negative outlook – explains the rating agency – reflects the risk of persistent economic weaknesses and worsening public finances if UK exports of goods and services lose access to the market. Key funding, if external funding or pound sterling reserve status is reduced currency

S & P said it could reduce Britain's ratings in a "scenario where Broxit's hard-won will become more and more secure."

According to this scenario, "we expect the budget deficit to increase and the ratio of public debt to GDP to be much larger than our baseline scenario".

On the other hand, prospects could be raised to a stable level if negotiations with the EU lead to greater security for the United Kingdom economy and if important sectors retain access to European markets without tarnishing tariffs and without significant non-tariff barriers. "

With William Shomberg
Wilfrid Exbrayat for French service

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