Saturday , April 17 2021

Standard & Poor's warns against the decline in UK credit rating

The credit rating agency of Standard & Poor has warned that it can reduce its credit rating to Britain again if the risk of leaving the EU "disorganized" becomes clearer.

Britain presented yesterday a draft agreement on BRICEST that became increasingly confusing when the renowned UK businessman resigned that he could not support the plan.

Standard & Poor's said the proposed plan has not yet affected the credit rating of the United Kingdom, but noted that what would happen as of now would be a key factor.

"We can lower the ratings under a scenario where the risk of an unregulated BRICST is more pronounced," the agency said in a brief report.

It considered that a "non-regulated" exit from the European Union restricted the entry of the manufacturing and services sectors in the United Kingdom into the main European markets or was subject to customs duties and trade barriers that were sufficiently high to reduce their competitiveness.

Standard & Poor said that an agreement would allow key sectors to keep their access to European markets without punitive tariffs, which could push them to adjust their "negative" to "stable" perspective.

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