Bulletin: Brexit Negotiations Continue As Both Sides Angle For A Deal

LONDON (S&P Global Ratings) Dec. 14, 2020--The U.K. and the EU have agreed to continue negotiations, signaling political willingness to reach an agreement on the contours of a future relationship. While the two sides' opinions regarding fishing rights and the U.K.'s future regulatory alignment with the single market appear at odds, we believe that the economic and political consequences of not reaching a deal are large enough for both sides to strive to find common ground. Our sovereign ratings on the U.K. (unsolicited AA/Stable/A-1+) assume the U.K. and the EU will reach a basic agreement at the end of the transition period. A no-deal scenario would have important implications for the U.K. economy, the country's ability to attract inflows of

...LONDON (S&P Global Ratings) Dec. 14, 2020--The U.K. and the EU have agreed to continue negotiations, signaling political willingness to reach an agreement on the contours of a future relationship. While the two sides' opinions regarding fishing rights and the U.K.'s future regulatory alignment with the single market appear at odds, we believe that the economic and political consequences of not reaching a deal are large enough for both sides to strive to find common ground. Our sovereign ratings on the U.K. (unsolicited ##/Stable/A-1+) assume the U.K. and the EU will reach a basic agreement at the end of the transition period. A no-deal scenario would have important implications for the U.K. economy, the country's ability to attract inflows of capital and labor over time, and its public and external finances, in our opinion. Our sovereign ratings on the U.K. could come under downward pressure if the economic recovery is significantly weaker than we anticipate, making fiscal consolidation...

Bulletin