July 11, 2017 / 6:53 PM / a year ago

BRIEF-Moody's says UK's creditworthiness under pressure from Brexit-related uncertainty

July 11 (Reuters) - Moody’s:

* ‍Moody’s says UK’s creditworthiness under pressure from Brexit-related uncertainty; political and fiscal risks rising​

* Says UK’s creditworthiness is under pressure following vote to leave EU, ongoing uncertainty over the outcome of negotiations with the EU‍​

* Moody’s says UK’s political and fiscal risks have increased following the government’s loss of its parliamentary majority in early elections in june

* While negotiations with EU started recently, it remains unclear whether UK government can eventually deliver “reasonably good” outcome for UK

* Moody’s says UK economy has started to slow, Moody’s expects UK economy to weaken significantly through remainder of this year

* Over medium term, growth prospects may be materially weaker if UK were to fail to reach new trade arrangement with eu allowing good access to single market​

* UK’s “weaker” public finances will likely lead to a further delay in reversing the rising public debt trend

* Says ‍​likelihood of an abrupt - and damaging - exit with no agreement and reversion to wto trading rules has increased

* Moody’s says UK government so far pursuing objectives that imply a ‘hard’ exit”

* Credibility of Bank of England should ensure financial stability, exchange rate flexibility provides support for exports,UK’s external stability​ Source text for Eikon:

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