Moody’s warns of UK
Britain was warned yesterday that it will have its credit rating cut if the country fails to get a goodenough deal on access to the European single market during its upcoming negotiations to leave the European Union. More than four months after Britain voted to leave the EU, the terms of Brexit remain to be ironed out. Prime Minister Theresa May has said she will invoke Article 50 of the EU Treaty by the end of March. That will launch two years of talks on Britain’s exit from the 28country bloc. In a wide-ranging report on the potential impact of Brexit on Britain’s economy, credit ratings agency Moody’s said it would cut its near-top Aa1 rating if it concludes that the loss of access to the single market “would materially weaken” medium-term growth. Even after any reduction, Britain would still have a high rating that would allow it to borrow easily in bond markets though it may cost it more to do so.