HomeLive CommentsMoody's updates view on Brexit: Uncertainty prevails before conclusive final agreement

Moody’s updates view on Brexit: Uncertainty prevails before conclusive final agreement

Moody’s, the credit rating agency, acknowledge the positive impact of the Brexit transition deal announced last week. However, it remained cautious that risks will prevail until a final agreement is made.

Here are some highlights of the report:

  • The agreement reinforces Moody’s view that the impact of Brexit will be manageable for rated UK corporate issuers, despite increased bureaucracy costs under an FTA.
  • For UK banks the agreement is mildly positive to the extent that it reduces downside risks to growth and revenues.
  • As far as the risk of a disorderly withdrawal is somewhat mitigated, the agreement reinforces Moody’s central scenario of gradually moderating growth in the UK.
  • Uncertainty concerning the terms of UK’s future long-term relationship with the EU will prevail until a conclusive final agreement is reached.

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