Saturday, 9th November 2019
Will the new elections in London bring the hoped-for breakthrough in the Brexit debate? The credit rating agencies of the US rating agency Moody's are skeptical about the British political perspectives. The view sinks, the classification wobbles.
Rating agency Moody's downgraded the rating outlook for the UK from "stable" to "negative" in view of the planned EU exit from the UK. A downgrade in the coming weeks is therefore possible – and in the case of another Brexit hanging game even probable.
Because the analysts of the US credit rating monitor in their justification expressly referred to the uncertainty and paralysis of the country by the impending Brexit and a probable deterioration of economic power. As a trading nation, the United Kingdom depends on the smooth flow of imports and exports. The most important trading partner of the country is the European Union.
UK credit ratings continue to be rated "AA2", Moody's said. As a result, the government in London can continue to provide itself with a top credit rating in the capital market with fresh loans.
In the case of a downgrade, the previously undisputed position on the market could wobble. There are plausible reasons for a revaluation. For almost three and a half years, the country has been looking for a solution to how the result of the referendum of 2016 can be implemented and Britain can leave the European Union. Opponents of the EU exit fear chaotic conditions, should it in fact come to an unregulated leaving without contractual arrangements on all levels.
In the weeks to come, the United Kingdom will be on an important political course: Prime Minister Boris Johnson has pledged his country to leave the European Union in January during the election campaign. His Brexit agreement with the EU had not found a majority in the MEPs. The lower house forced him to extend the Brexit deadline from October 31 to January 31. By early elections, the blockade in the Brexit process should be solved.
The parliamentary elections will take place later this year: On December 12, the British are to cast their votes and thus create new majorities in the British lower house.