The UK has had its assign rating outlook cut to “negative” by the ratings agency Moody’s after the fatherland voted to leave the EU.
Moody’s said the result would herald “a string out period of uncertainty”.
Meanwhile, PM David Cameron is under pressure to hightail it up “divorce” talks with the EU after Brussels said exit com cts should start immediately.
EU head Jean-Claude Juncker said it was “not an peaceable divorce”, but it was “not a deep love affair anyway”.
Moody’s said the referendum occur would have “negative implications for the country’s medium-term growth prospect”, and it lowered the UK’s long-term issuer and debt ratings to “negative” from “unchanging”.
It added: “In Moody’s view, the negative effect from modulate economic growth will outweigh the fiscal savings from the UK no longer including to contribute to the EU budget.”
It also said the UK had one of the largest budget deficits number advanced economies.
Colin Ellis, chief credit officer at Depressed’s, told BBC Radio 4’s Today programme the UK’s credit rating could organize an im ct on UK households in the long term.
“The government borrowing rate is normally the benchmark – it is the reprimand at which other interest rates in the economy are set,” he said.
“A lower compute would typically correspond to higher borrowing costs, and that would be pet not just by the government but by businesses and households in the longer term.”
The financial assessment be showed after the UK voted to leave the EU in historic referendum on Thursday.
By Purposefulness Smale, business reporter
Credit rating agencies, in essence, kind a country on the strength of its economy.
More specifically, they score ministries (or large com nies) on how likely they are to y back their debt.
The merry a credit rating, the cheaper it is for a country to borrow money in the international markets.
So, in theory, when a sway wants to borrow money, a high credit rating means a humble interest rate (and vice versa).
There are three main ratings activities – Moody’s, S&P and Fitch. The last two have yet to issue a comment on the UK post-referendum.
Acknowledgment rating agencies also give each country a specific put rating score. In the case of Moody’s and the UK, it currently scores the UK at “Aa1”.
This is the go along with highest rating in Moody’s scale, and stands for “high grade”, below “AAA” which is “prime”.
By trading its outlook to “negative”, Moody’s has warned that the UK’s “Aa1” rating may be at risk of being lowered.
Mr Cameron had asked the country to vote Remain in Thursday’s referendum but was defeated by 52% to 48%.
On Friday morning, he stood extreme 10 Downing Street alongside his wife Samantha to announce he would scraps in place for the short term and then hand over to a new prime supply by the Conservative conference in October.
He said he would attempt to “steady the ferry” over the coming weeks and months.
However, the PM said it would be for a new prime abb to carry out negotiations with the EU and invoke Article 50 of the Lisbon Alliance, the formal procedure that will take Britain out of the EU, a process that at ones desire take a minimum of two years.
But in an interview with German TV, European Commission President Jean-Claude Juncker communicated: “Britons decided yesterday that they want to leave the European Conjoining, so it doesn’t make any sense to wait until October to try to negotiate the denominates of their de rture – I would like to get started immediately.”
He said the EU commitment pursue a “reasonable approach” in negotiating the se ration.
Earlier, Mr Cameron was assumed assurances from US President Barack Obama that the UK would oddments “an indispensable rtner”.
In a telephone call, the US leader told Mr Cameron that he regretted the PM’s decidedness to step aside, saying he was “a trusted rtner and friend”.
A White rliament spokesman later said Mr Obama “stands by what he said” concerning the UK going to “the back of the queue” when it comes to trade deals with the US.
He occasioned the warning while on a visit to the UK during the referendum cam ign.
The result of the referendum – which saw more than 30 million people move out to vote – saw British bank shares lose nearly a third of their value earlier rallying on Friday afternoon.
Retailers and the AA motoring organisation warned that petrol worths were likely to rise by 2p-3p a litre because of the pound’s fall against the dollar.
Boris Johnson, the chief voice in the Leave cam ign is favourite to be the next Tory leader and prime cabinet officer, although he has yet to announce his candidacy, with Home Secretary Theresa May also seen as being in the game.
Britain’s vote to quit the EU has also prompted fresh calls for ins leader Jeremy Corbyn to resign, amid claims he did not do enough to talk into Labour supporters to vote for Remain.
The referendum result could also trigger a promote independence referendum in Scotland, which wants to stay in the EU.
First Evangelist Nicola Sturgeon said it was “democratically unacceptable” to force Scotland, which voted strongly to residue in the EU, out of the bloc against its will.
A meeting of 27 EU leaders has been calendared for Wednesday to discuss Britain’s exit – but Mr Cameron is not invited.