Bulletin: Ratings On The United Kingdom Not Immediately Affected By Election Outcome

LONDON (S&P Global Ratings) June 9, 2017--S&P Global Ratings said today that the outcome of the snap election, which has yielded a hung parliament, should have no immediate impact on the ratings on the United Kingdom (unsolicited; AA/Negative/A-1+). The ruling Conservative Party went to the polls with a 17-seat majority. The outcome of yesterday's election is that the Conservatives have now lost this majority, which casts doubt on the viability of a Conservative-led government and the timing of Brexit negotiations, as well as the U.K.'s future stance in such negotiations. Depending on the political calculus and the final government make-up, there is also likely to be a shift in domestic macroeconomic policy, including on various aspects of public expenditure given

...LONDON (S&P Global Ratings) June 9, 2017--S&P Global Ratings said today that the outcome of the snap election, which has yielded a hung parliament, should have no immediate impact on the ratings on the United Kingdom (unsolicited; ##/Negative/A-1+). The ruling Conservative Party went to the polls with a 17-seat majority. The outcome of yesterday's election is that the Conservatives have now lost this majority, which casts doubt on the viability of a Conservative-led government and the timing of Brexit negotiations, as well as the U.K.'s future stance in such negotiations. Depending on the political calculus and the final government make-up, there is also likely to be a shift in domestic macroeconomic policy, including on various aspects of public expenditure given the electorate's apparent rejection of further austerity measures. Our ratings on the U.K. already take into account a less predictable policy framework following the vote to leave the EU in June 2016 (see "Ratings On The United...

Bulletin