UK’s financial situation just keeps getting worse and worse
28 Jun 2016
International ratings agency Fitch has downgraded Britain’s credit rating by one notch following the vote to leave the European Union.
The move to AA from AA+ follows the decision earlier on Monday by Standard and Poor’s to drop the country’s sovereign rating by two notches to AA from AAA.
UK’s credit rating slashed in wake of Brexit
‘Fitch believes that uncertainty following the referendum outcome will induce an abrupt slowdown in short-term GDP growth, as businesses defer investment and consider changes to the legal and regulatory environment,’ the agency said in a statement.
‘Medium-term growth will also likely be weaker due to less favourable terms for exports to the EU, lower immigration and a reduction in foreign direct investment. An adjustment in the value of sterling and changes in the business environment could also affect growth.’
Meanwhile Lithuania’s foreign minister said the UK must clarify whether its decision to leave the EU was ‘clear and final’.