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S&P could cut Britain's rating again before Brexit terms known
June 20, 2017 / 10:45 AM / 3 months ago

S&P could cut Britain's rating again before Brexit terms known

LONDON, June 20 (Reuters) - S&P Global may not wait until the terms of Britain’s divorce from the European Union are known before it takes action on its rating again, most likely resulting in another cut, its sovereign ratings chief told Reuters on Tuesday.

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.

Asked if it would wait until the end of the Brexit negotiations to take another ratings action on Britain, Moritz Kraemer said: “No, we don’t have to wait.”

“We will review the UK every six months... and if necessary more often...We will be watching the economic implications, the implications for the public finances, the constitutional implications like the whole Scotland situation...and things like the currency and if it will maintain its reserve status.”

Kraemer, speaking on the sidelines of a Euromoney conference, said the next rating action would most likely be a cut because of the negative outlook. (Reporting by John Geddie, Editing by Dhara Ranasinghe)

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