Belfast Telegraph

UK Website Of The Year

Home Business Brexit

UK's credit rating is set to take a hit

By Ben Woods

Published 20/07/2016

The UK's creditworthiness is
The UK's creditworthiness is "under downward pressure" after the vote to leave the European Union, according to a report

The UK's creditworthiness is "under downward pressure" after the vote to leave the European Union, according to a report.

A study by credit ratings agency Moody's said the UK should brace itself for a hit following the Brexit vote, with uncertainty impacting economic growth and weakening government finances.

Moody's expects UK gross domestic product (GDP) to hit 1.5% this year, before slipping back to around 1% in 2017.

However, the UK's large economy, its "solid institutional strength", flexible labour market and high wealth levels will help to reinforce its credit position, according to its annual credit analysis report.

Kathrin Muehlbronner, senior vice president at Moody's, said: "The economy will slow significantly in the near term, and medium-term growth prospects could be materially weaker if the UK failed to reach a new trade arrangement with the EU that allows it reasonably good access to the European Single Market.

"Given the complexity and sheer amount of economic policy decisions in the coming years, the UK's institutions will be tested."

Belfast Telegraph

Your Comments

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting? customercare@belfasttelegraph.co.uk

Read More

From Belfast Telegraph