Moody’s: Prospect of the UK leaving the EU without any agreement has risen materially

Credit rating agency Moody's, in its latest Brexit update, said that prospect of the UK leaving the EU without any agreement has risen materially.

Key points:

   •  No-deal Brexit would damage the UK's economic and fiscal strength.
   •  That would be a credit negative for a range of debt issuers.
   •  It would be a foregone conclusion that UK's credit profile would irreparably weaken in the event of a no-deal Brexit.
   •  If a no-deal Brexit happens, immediate impact likely to be sharp fall in the pound, temporarily higher inflation.
   •  But still believes that UK and EU will eventually reach a deal to preserve many of the current trading arrangement, particularly around trading in goods.