June 9, 2017 / 11:03 AM / a year ago

UK rating not immediately affected by election - S&P

LONDON, June 9 (Reuters) - Britain’s credit rating won’t immediately be affected by a national election which yielded a hung parliament, S&P Global said on Friday, but warned it could create further uncertainty by potentially delaying Brexit negotiations.

British voters dealt Prime Minister Theresa May a devastating blow in a snap election she had called to strengthen her hand in Brexit talks, wiping out her parliamentary majority and throwing the country into political turmoil.

“In our view, the lack of a majority for any party is likely to delay Brexit negotiations, scheduled to start very soon,” S&P Global said in a statement.

“Furthermore, we do not exclude the possibility of another snap election. These considerations are reflected in our current negative outlook on the long-term ratings.”

S&P currently rates the UK at AA, with a negative outlook, having stripped it of its coveted triple-A rating immediately after last year’s vote by the country to leave the European Union.

The firm’s chief sovereign analyst Moritz Kraemer told Reuters earlier this week that the shape of the post-Brexit deal with the EU remained the main factor for the UK’s rating. (Reporting by Marc Jones; Editing by John Geddie)

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