Credit rating agency Moody’s, in its latest Brexit update, said that prospect of the UK leaving the EU without any agreement has risen materially.
Key points:
“¢ No-deal Brexit would damage the UK’s economic and fiscal strength.
“¢ That would be a credit negative for a range of debt issuers.
“¢ It would be a foregone conclusion that UK’s credit profile would irreparably weaken in the event of a no-deal Brexit.
“¢ If a no-deal Brexit happens, immediate impact likely to be sharp fall in the pound, temporarily higher inflation.
“¢ But still believes that UK and EU will eventually reach a deal to preserve many of the current trading arrangement, particularly around trading in goods.