United Kingdom Affirmed by S&P, Outlook Remains Negative

(Bloomberg) -- United Kingdom’s long-term foreign currency debt rating was affirmed at AA by S&P.

The negative outlook reflects reflects the risk of sustained economic weakness and a deterioration in government finances if merchandise and services exports from the U.K. lose access to key European markets, external financing diminishes, or sterling’s status as a reserve currency comes under pressure due to a loss of confidence in the U.K. economy, S&P said in a statement Friday.

S&P could lower the ratings under a scenario in which a disorderly Brexit is increasingly certain, the ratings agency said. S&P could revise the outlook to stable if negotiations with the EU provide greater certainty for the U.K. economy, and if key sectors retain access to European markets without penalizing tariffs or significant nontariff barriers, according to the statement.

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