Fitch: Scottish independence could lead to a rating downgrade

According to Fitch Ratings' review of the sovereign ratings of the UK, a second Scottish independence referendum that resulted in vote for independence would be a negative credit shock for the UK economy and public finances, and could lead to a rating downgrade.

Key headlines

• Scottish independence would have adverse effects on the UK public finances and economy
• Key uncertainties include the impact on the future trade relationship between the two countries, the financial sector and Scotland's currency arrangements
• Scottish independence would lead to an increase in the ratio of UK government debt to GDP
• A wide range of outcomes from Brexit is possible and we will continue to assess the UK sovereign rating as developments unfold
• The Negative Outlook on the UK's 'AA' sovereign rating reflects the heightened uncertainty following the Brexit vote and the long-term challenge for the UK to reduce public debt