Fitch downgraded the credit rating of Britain after a Brexit

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Fitch понизило кредитный рейтинг Британии после Brexit

Rating Agency Fitch downgraded the sovereign rating of Britain after a Brexit, citing the negative impact on the economy of leaving the EU. Now he is downgraded from “AA” to “AA+”.

The Agency also announced a negative Outlook for further rating change. As noted on the website of Fitch, the results of the referendum on 23 June will have a negative effect on the British economy, the country’s financial system and political stability.

According to experts Fitch, the results of the referendum will affect the decline in GDP growth and the investment climate. In addition, with the uncertainty of the adverse effect of Brexit GDP in 2016 amounted to 1.6% compared with the previous forecast of 1.9% in 2017 and 0.9% in 2018 and 0.9%.

In the medium term, economic growth will also be less predictable because of less favorable export conditions to EU countries, reduction of migration and reduction of direct investments from abroad. The situation will largely depend on future trade agreements between London and Brussels.

Other factors that will affect the further economic development — the resignation of Prime Minister David Cameron and a possible referendum on independence in Scotland.

Earlier, rating Agency S&P also downgraded the credit rating of Britain from two places: from the highest AAA to AA with negative Outlook

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