June 22, 2017 / 9:00 AM / a month ago

S&P: Breakdown of Brexit talks would be negative for UK rating, "absorbable" for rest of EU

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LONDON, June 22 (Reuters) - A breakdown in Brexit talks between Brussels and London would be negative for the United Kingdom's credit rating but could be absorbed by other EU countries, S&P Global's sovereign ratings chief Moritz Kraemer said on Thursday.

The firm stripped Britain of its coveted triple-A rating after the Brexit vote last June, downgrading it by two notches to AA and assigning a negative outlook.

If no deal was struck, it would be negative for the United Kingdom said Kraemer, adding a downgrade of more than one notch could not be excluded "but it would be very unusual".

Asked what a breakdown in Brexit talks would mean for other European Union countries, Kraemer said: "It would be absorbable at the current ratings level" though he added that Ireland would be most exposed. (Reporting by Marc Jones, writing by Karin Strohecker, editing by Nigel Stephenson)

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