Moody's: UK rating would be downgraded if the UK didn't protect core elements of its access to the Single Market

The US-based ratings agency, Moody’s Investor Service, warned in its latest report that the UK’s sovereign rating would be downgraded if the UK's loss of access to the European Single Market following Brexit were to materially weaken medium-term growth.

The rating agency expects that the UK government's Autumn Statement, due on 23 November, will likely give significantly more clarity in this area.

Key Quotes:

“A key factor in Moody's assessment of the impact of Brexit on the UK's credit profile will be how far any new trade arrangement between the UK and the European Union replicates EU membership, as well as how long it takes to achieve a new settlement.”

"We would downgrade the UK's sovereign rating if the outcome of the negotiations with the EU was a loss of access to the Single Market as this would materially damage its medium-term growth prospects."

"A second trigger for a downgrade would be if we were to conclude that the credibility of the UK's fiscal policy had been tarnished as a result of Brexit or other reasons."