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No-deal Brexit to cause "a few" ratings actions on UK borrowers: S&P Global

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No-deal Brexit to cause "a few" ratings actions on UK borrowers: S&P Global
FILE PHOTO: Anti-Brexit protesters hold flags outside the Houses of Parliament in London, Britain September 25, 2019. REUTERS/Peter Nicholls   -   Copyright  Peter Nicholls(Reuters)
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(Reuters) – Britain crashing out of the European Union without agreeing an exit deal could lead to “a few” ratings downgrades, outlook revisions and creditwatch actions on UK entities most vulnerable to the resulting economic disruption, S&P Global said on Friday.

The automotive, leisure, retail, real estate, aerospace and defense, and transport infrastructure were the most exposed sectors.

The ratings agency said no-deal Brexit could change its broadly stable ratings assessment on British banks, but saw outlook revisions as more likely than downgrades in the near term.

It also has a ‘negative’ outlook on its ‘AA/A-1+’ sovereign credit rating following a double-notch downgrade from AAA shortly after the 2016 referendum to leave the EU.

“The outlook on the ratings is negative, reflecting the risk of sustained economic weakness and deterioration in government finances in a no-deal Brexit,” the report said.

(Reporting by Sujata Rao; editing by Marc Jones)

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