Fitch af­firms Bri­tish debt rat­ing, out­look neg­a­tive

Kuwait Times - - BUSINESS -

The Fitch rat­ings agency Fri­day af­firmed the AA long-term debt rat­ing and neg­a­tive out­look for the United King­dom and the Bank of Eng­land, when they have been since June.

In the wake of the surprise vote in June to exit the Euro­pean Union, which touched off fears of slower growth, prompt­ing a cut in the debt rat­ing from AAA, Fitch said Fri­day re­cent po­lit­i­cal events sug­gested Bri­tain likely will seek to con­trol im­mi­gra­tion from the EU and re­ject the ju­ris­dic­tion of the Euro­pean Court of Jus­tice. “In our opin­ion, and based on the stated po­si­tion and in­ter­ests of the EU, this would make it un­likely that the UK re­mains a mem­ber of the Euro­pean Sin­gle Mar­ket af­ter leav­ing the EU,” the agency said in a state­ment.

Those de­vel­op­ments also cre­ate un­cer­tainty about the econ­omy and new in­vest­ment. “Fitch as­sumes that pri­vate-sec­tor in­vest­ment growth will de­cline in 2017 as firms de­lay cap­i­tal spend­ing com­mit­ments in the face of the un­cer­tain­ties about fu­ture trad­ing ar­range­ments with the EU and the reg­u­la­tory en­vi­ron­ment,” the state­ment said. —AFP

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