SOPOT, June 5 (Reuters) - S&P Global’s decision on whether or not to downgrade Britain’s credit rating again will not hang on this week’s UK election but on Brexit negotiations and future relations with the EU, the firm’s chief sovereign analyst said on Monday.
Asked whether Thursday’s election could result in a move of S&P’s UK’s rating, which is currently AA with a ‘negative outlook’, Moritz Kraemer the firm’s top analyst said: “No, not because of the election.”
“The outcome is not particularly contested. I think all the polls still suggest the Conservative party will win a majority. She (UK Prime Minister Theresa May) has been pretty clear she wants a hard Brexit.”
“So what this rating will hang on is the outcome of the negotiations and the future relations the UK will have with the European Union.” (Reporting by Marcin Goettig, Writing by Marc Jones, Editing by Abhinav Ramnarayan)