Views Article – Sharenet Wealth

Europe, Forex

New UK PM Johnson increases the chance of no-deal Brexit – Moody’s

LONDON, July 23 (Reuters) – Britain is more likely to leave the European Union without a deal after Boris Johnson was chosen to succeed British Prime Minister Theresa May on Tuesday, credit ratings agency Moody’s said.

Johnson has pledged to deliver Brexit on Oct. 31 even if it means leaving without a deal. He defeated Jeremy Hunt in a ballot of party members to become the new Conservative party leader and will be appointed as PM on Wednesday.

“With the election of Mr Johnson, the likelihood of a sustainable compromise appears lower than before,” said Colin Ellis, Moody’s Managing Director for Credit Strategy.

“Our view remains that a no-deal Brexit would have significantly negative credit effects for the UK sovereign and related issuers.”

(Reporting by Alistair Smout; editing by Stephen Addison)

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.
Array ( )