LONDON, June 22 (Reuters) - A breakdown in Brexit talks between Brussels and London would be negative for the United Kingdom’s credit rating but could be absorbed by other EU countries, S&P Global’s sovereign ratings chief Moritz Kraemer said on Thursday.
The firm stripped Britain of its coveted triple-A rating after the Brexit vote last June, downgrading it by two notches to AA and assigning a negative outlook.
If no deal was struck, it would be negative for the United Kingdom said Kraemer, adding a downgrade of more than one notch could not be excluded “but it would be very unusual”.
Asked what a breakdown in Brexit talks would mean for other European Union countries, Kraemer said: “It would be absorbable at the current ratings level” though he added that Ireland would be most exposed. (Reporting by Marc Jones, writing by Karin Strohecker, editing by Nigel Stephenson)