Monday, June 27, 2016

Brexit: S & P and Fitch degrade the note of the United Kingdom – The Point

After Brexit, the consequences are felt in the UK. The financial agency Fitch lowered the rating on Monday to British debt. It therefore goes from AA + to AA with a negative outlook, implying that it could be lowered further in the coming months. Earlier in the evening, the Standard and Poor’s rating agency has also downgraded by two notches the debt rating of the United Kingdom, noting the choice of British voters to see their country to leave the European Union. The note from the British debt changes from “AAA”, the highest possible, “AA”, two notches below, according to a statement from S & amp; P. The agency cites “uncertainty” has generated the referendum, and anticipates “a less predictable political, less stable and less effective” in the coming months.



The “problems constitutional “

The new note is with a negative perspective, that is to say, it could be lowered again. The decision by S & amp; P, one of the three global rating agencies alongside Moody’s and Fitch, “also refers to the risk of deterioration in market access conditions” Financial UK, says the agency, and “constitutional problems” that will arise, when the pro-European Scotland plans to hold a referendum on independence.

by Friday Moody’s lowered its outlook on UK debt rose to “negative”, there also prelude to a possible downgrade. The notes issued by the rating agencies, solvency kinds of certificates, the conditions dictate that companies or in this case the country can borrow on the financial markets. The higher the score, the lower the interest rates demanded by creditors will be. British voters have voted almost 52% Thursday for an EU output.

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