Monday, June 27, 2016

S & P and Fitch: US rating agencies reduce thumb over the UK – Handelsblatt

Proposed referendum on United Kingdom membership of the European Union referendum

The US rating agencies Standard & amp; Poor’s (S & P) and Fitch UK punished because of Proposed referendum on United Kingdom membership of the European Union-decision

(Photo: AP)

New York the major US rating agencies UK have punished because of Proposed referendum on United Kingdom membership of the European Union-vote. Standard & amp; Poor’s (S & P) recognized the country’s top credit rating from; its credit rating was downgraded from the best rating “AAA” by two steps down to “AA”, the agency said on Monday. Fitch took the credit rating of “AA +” back to “AA”. Both rating agencies, the outlook is negative

The gradation was due to the fact that the Proposed referendum on United Kingdom membership of the European Union-vote would “predictability, stability and effectiveness of the political processes in the UK” weaken, so S &. P. In addition, effects on the British economy and public finances are expected to

Similarly, Fitch said:. I The decision to withdraw from the European Union have a negative effect on the British economy, public finances and policy continuity , the agency declare on Monday evening. Fitch slashed given the expected uncertainty, growth forecasts for this and the next two years.

A lower credit rating may lead ultimately to the fact that a country has to pay higher interest rates on the capital markets or generally poor reaches fresh money. Britain was among the few countries with the top rating of “AAA”, the so-called Triple-A. Germany is still the highest rating

After Proposed referendum on United Kingdom membership of the European Union-vote . helplessness in London

the UK Chancellor appeased the markets and rejects the call for a rapid withdrawal from the EU. But how to proceed, is open. Even leading Proposed referendum on United Kingdom membership of the European Union advocates have no clear idea more …

The S &. P analysts named as victims of Proposed referendum on United Kingdom membership of the European Union explicitly the financial sector, an essential part contribute to employment and public revenue. Furthermore warned S & P of a collapse of Britain. The result of the referendum “could trigger a constitutional crisis if it leads to a second referendum to the Scottish independence from Britain”.

The upcoming negotiations for an exit of Britain from the European Union were “with a high degree “linked to uncertainty about how the Proposed referendum on United Kingdom membership of the European Union will ultimately configured, the rating agency further. Negotiations on future relations could extend far over the two years to come, which would budgeted for the actual withdrawal from the EU.

The third major rating agency Moody’s the outlook for the credit rating on Friday from “stable negative “reduced” on “. The rating was Moody’s, however, initially unchanged at “AA1″, which is one step below the top grade in Moody’s schema.

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