LONDON (Reuters) – A new Brexit deal will be “constructive” for Britain’s downgrade-threatened credit rating if it gets the backing of the UK’s parliament, S&P Global said on Thursday.
Britain clinched a last-minute Brexit deal with the European Union in Brussels on Thursday, but still faces a challenge in getting it approved by parliament before a planned October 31 Brexit deadline.
“This is constructive news, also for the rating,” one of S&P’s top European sovereign analysts, Frank Gill, told Reuters.
On whether it would stabilise the UK’s AA rating’s ‘negative’ outlook if approved, he added: “Ultimately it is going to come down to how the economy performs.”
“Even with a deal you still have enormous questions about, for example, UK financial services firms’ access to the (EU) single market.”
(Reporting by Marc Jones; Editing by Dhara Ranasinghe)