Fitch Says Brexit to Pile Pressure on Europe Ratings
- Record year for sovereign downgrades likely in 2017: Fitch
- Brexit effect credit negative in medium-long term for Europe
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The U.K.’s credit-rating cut after voting to leave the European Union may be the first in a run of sovereign downgrades in the bloc if fiscal prudence takes a back seat to tackling political instability across the continent, Fitch Ratings said in a report.
When Fitch cut Britain’s rating to AA from AA+ in June, it was one of 15 sovereign demotions in the first half. With 22 nations from Japan to Angola carrying a negative outlook, it’s “likely" the total number of cuts this year will exceed the record 20 downgrades in 2011, according to an e-mailed report on Thursday.