Rating Agencies Are Watching UK Economy Following Election

After UK’s election results were announced earlier on Friday, several rating agencies including Standard and Poor’s (S&P), Fitch, and Moody’s are monitoring the economy for potential downgrade.

This news comes after the UK Prime Minster Theresa May’s attempt to secure a greater majority failed as Conservative Party and Democratic Unionist Party formed an alliance to create a government.

Following the election, both S&P and Fitch downgraded The UK’s sovereign rating as Fitch told Reuters that the political uncertainty might have negative impact on the British economy.

On the other hand, Moody’s confirmed that it was closely watching British economy prior to Brexit and the latest political uncertainty might end up the country incurring a budget deficit and increased public debt.

Featured Image: Pixabay/KostkaCZ

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