Fitch holds Britain's rating stable but warns over Brexit

10th June 2016, Comments 0 comments

Credit agency Fitch left Britain's rating unchanged at "AA+" Friday but warned that if the country votes in favor of exiting the European Union, the rating could be lowered.

Fitch said the country merits its second-highest credit grade due to its wealthy, diversified and flexible economy, its solid policy management and the global strength of the British pound.

It also said that its rating, with a "stable" outlook, crucially assumed that the country would remain in the European Union.

But it warned that if the June 23 referendum goes in favor of breaking from the EU, the rating could change.

"Fitch believes that a vote to leave the EU would be a moderate credit negative for the UK, affecting its medium-term growth and investment prospects, its external position, and potentially the future of Scotland within it," Fitch said.

The agency said they would review Britain's rating shortly after the vote if the pro-Brexit vote wins.

© 2016 AFP

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