Fitch affirms British debt rating, outlook negative
The Fitch ratings agency on Friday affirmed the AA long-term debt rating and negative outlook for the United Kingdom (UK) and the Bank of England (BoE), when they have been since June.
In the wake of the surprise vote in June to exit the European Union (EU), which touched off fears of slower growth, prompting a cut in the debt rating from AAA, Fitch said on Friday recent political events suggested Britain likely will seek to control immigration from the EU and reject the jurisdiction of the European Court of Justice.
ALSO READ: Britain presses for 'unique' deal with EU after Brexit
"In our opinion, and based on the stated position and interests of the EU, this would make it unlikely that the UK remains a member of the European Single Market after leaving the EU," the agency said in a statement.
Those developments also create uncertainty about the economy and new investment.
"Fitch assumes that private-sector investment growth will decline in 2017 as firms delay capital spending commitments in the face of the uncertainties about future trading arrangements with the EU and the regulatory environment," the statement said.
ALSO READ: Moody's cuts Britain's credit outlook to 'negative'
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Tamil Nadu Weather Alert: Chennai may receive heavy rains; IMD issues yellow & orange alerts in these districts
Fundamental picks by brokerage: These 3 largecap, 2 midcap stocks can give up to 28% return - Check targets
SIP vs PPF: How much corpus you can build in 15 years by investing Rs 1.5 lakh per year? Understand through calculations
SIP+SWP: Rs 10,000 monthly SIP for 20 years, Rs 25 lakh lump sum investment, then Rs 2.15 lakh monthly income for 25 years; see expert calculations
Top 7 Mutual Funds With Highest Returns in 10 Years: Rs 10 lakh investment in No 1 scheme has turned into Rs 79,46,160 in 10 years
SBI Senior Citizen Latest FD Rates: What senior citizens can get on Rs 7 lakh, Rs 14 lakh, and Rs 21 lakh investments in Amrit Vrishti, 1-, 3-, and 5-year fixed deposits
03:05 PM IST