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S&P and Fitch warn UK rating still faces no-deal Brexit risk

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S&P and Fitch warn UK rating still faces no-deal Brexit risk
FILE PHOTO: The S&P Global logo is displayed on its offices in the financial district in New York City, U.S., December 13, 2018. REUTERS/Brendan McDermid   -   Copyright  BRENDAN MCDERMID(Reuters)
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LONDON (Reuters) – Ratings agencies S&P Global Ratings and Fitch Ratings kept open the possibility of a further cut to Britain’s credit status because of the continued risk of a no-deal Brexit, despite a recent delay to the deadline for Britain’s departure from the European Union.

“The agreement between the EU and the UK to further extend the process outlined in Article 50 of the Treaty on European Union to 31 October 2019 reduces but does not eliminate the risk of a ‘no-deal’ Brexit over the next six months,” Fitch said.

S&P said its negative outlook reflected the risk of sustained economic weakness and a hit to government finances if Britain lost access to EU markets, external investors took fright or sterling’s status as a reserve currency came under pressure.

Fitch and S&P both have a AA rating on British government debt.

(Writing by William Schomberg; Editing by Richard Chang)

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