Moody’s warns of UK

Kuwait Times - - BUSINESS -

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.

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