INTERNATIONAL – Britain’s AA credit rating may not be affected by any change of prime minister, S&P Global said on Wednesday, but it would be unlikely to survive an economically painful hard Brexit from the European Union.
With less than four months to go until the UK is due to leave the EU, events have been plunged into chaos as members of Theresa May’s ruling Conservative party, unhappy at her Brexit plans, have moved to oust her.
Britain became the first triple-A country to suffer a two-notch downgrade following the 2016 Brexit vote, and S&P has kept a ‘negative’ outlook – effectively a downgrade warning – on its rating ever since.
“A change of leadership would be an important development for us to take into account but I wouldn’t necessarily characterize it as an automatic rating action,” S&P’s lead global sovereign analyst Roberto Sifon-Arevalo told Reuters.
"We would need to analyze what it actually means for future policymaking: who is coming after and what are the policies.”