Disorderly Brexit would renew pressure on Britain credit rating: S&P Global

S&P cut Britain`s previously triple-A rating by two-notches to AA with a negative outlook, after the mid-2016 Brexit vote.

Anti-Brexit demonstrators wave EU and Union flags outside the Houses of Parliament in London. Image source: Reuters

A disorderly Brexit as a result of Britain misjudging the "self-preservation" instincts of the European Union could lead to a further downgrade of the UK`s sovereign credit rating, S&P Global said on Monday.

"The UK risks further adverse economic, financial, and ratings outcomes if it ignores the EU`s rationale of self-preservation," S&P`s top sovereign analyst Moritz Kraemer said in a report.

He was referring to the EU needing to avoid a domino effect of other countries wanting to leave the bloc if they perceived Britain received a "lenient" post-Brexit trade deal.

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S&P cut Britain`s previously triple-A rating by two-notches to AA with a negative outlook, after the mid-2016 Brexit vote.

"The U.K. government at the time misread the electorate`s mood when it invited it to vote on EU membership. It is hopefully not also misjudging central convictions held across the Channel."

"Otherwise, a disorderly Brexit could become increasingly likely. Such a turn of events would bring renewed downward pressure to Britain`s sovereign rating," Kraemer added.

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