LONDON, Nov 15 (Reuters) - Credit rating firm S&P Global warned on Thursday that it could cut Britain’s AA credit rating again if the risk of a “disorderly” Brexit became more apparent.
Britain laid out a draft Brexit agreement on Wednesday but the plans were thrown into chaos on Thursday when the chief UK negotiator resigned saying he could not support the plan.
S&P said the proposed plan had not immediately affected its AA UK rating but stressed what happened from here on with the deal would be key.
“We could lower the ratings under a scenario in which the likelihood of a “disorderly” Brexit appears more apparent,” S&P said in short report.
It defined a “disorderly” Brexit “as one which would either significantly limit U.K. manufacturing and services access to key European markets, or subject them to tariffs and non-tariff barriers high enough to reduce their ability to compete.”
In contrast, it said a deal which allowed key sectors to retain their access to European markets without penalising tariffs could see the ‘negative outlook’ on rating replaced by a ‘stable’ one.
Reporting by Marc Jones; editing by Josephine Mason