[size=18]Richard Hartley-Parkinson for Metro.co.ukTuesday 28 Jun 2016 6:37 am
The UK’s credit rating is dropping (Picture: AFP/Getty)
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International ratings agency Fitch has downgraded Britain’s credit rating by one notch following the vote to leave the European Union.
The move to AA from AA+ follows the decision earlier on Monday by Standard and Poor’s to drop the country’s sovereign rating by two notches to AA from AAA.
‘Fitch believes that uncertainty following the referendum outcome will induce an abrupt slowdown in short-term GDP growth, as businesses defer investment and consider changes to the legal and regulatory environment,’ the agency said in a statement.
‘Medium-term growth will also likely be weaker due to less favourable terms for exports to the EU, lower immigration and a reduction in foreign direct investment. An adjustment in the value of sterling and changes in the business environment could also affect growth.’
Meanwhile Lithuania’s foreign minister said the UK must clarify whether its decision to leave the EU was ‘clear and final’.
Boris Johnson seems blind to the truth
[size=26]Boris tries to reassure post-Brexit Britain
Two credit ratings agencies have now downgraded the UK (Picture: AFP/Getty)
Speaking at the United Nations in New York, Linas Linkevicius said the current uncertainty was not only detrimental to financial markets, but to millions of Europeans.
He said that if the decision was final, UK-EU talks should start without any artificial delays.
He said the UK could stay in the single market like Norway, which pays large fees to the EU budget, it could follow Switzerland which has about 100 agreements with the EU in different fields, or it could negotiate a free trade treaty with the EU.
Read more: http://metro.co.uk/2016/06/28/uks-financial-situation-just-keeps-getting-worse-and-worse-5970605/#ixzz4Ct2saTh0