Brexit keeps UK debt outlook ‘negative’

AFP, WASHINGTON:  The specter of a messy Brexit means the outlook for British sovereign debt remains negative, the ratings agencies S&P and Fitch said Friday.

Both agencies affirmed their ‘AA’ high-grade rating on British short- and long-term sovereign debt but they pointed to the recent deadlock in Brexit talks as reason to worry for the British economy.

Six months since authorities in London triggered the process for exiting the European Union, a second phase of talks on future EU-British trade relations has yet to begin.

Failure to reach an agreement could leave Britain without privileged access to the largest market for its goods and services after it leaves the economic bloc in 2019.

“The limited time left for negotiating a framework for a future relationship, along with internal divisions among British policymakers, has increased the risk of a disorderly Brexit,” S&P said in a statement.

A clear sticking point is the exit payment, or the amount of money Britain will have to pay into the EU budget, honoring commitments made during Britain’s EU membership even as it prepares to leave.

Brexit keeps UK debt outlook negative

AFP, WASHINGTON: The specter of a messy Brexit means the outlook for British sovereign debt remains negative, the ratings agencies SP and Fitch said Friday. Both agencies affirmed their AA high-grade rating on British short- and long-term sovereign debt but they pointed to the recent deadlock in Brexit talks as reason to worry for the British economy. Six months since authorities in London triggered the process for exiting the European Union, a second phase of talks on future EU-British trade relations has yet to begin. Failure to reach an agreement could leave Britain without privileged access to the largest market for its goods and services after it leaves the economic bloc in 2019. The limited time left for negotiating a framework for a future relationship, along with internal divisions among British policymakers, has increased the risk of a disorderly Brexit, SP said in a statement. A clear sticking point is the exit payment, or the amount of money Britain will have to pay into the EU budget, honoring commitments made during Britains EU membership even as it prepares to leave.