Very strong incentive for UK and EU to avoid no-deal Brexit: S&P

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Reuters LONDON
Last Updated : Feb 06 2019 | 8:35 PM IST

LONDON (Reuters) - Britain and the European Union continue to have a "very strong incentive" to avoid a no-deal Brexit which would damage the outlook for its sovereign credit rating, ratings agency Standard & Poor's said on Wednesday.

"The political incentive for the UK and the EU to negotiate an orderly outcome -- even after a potential delay -- remains very strong," S&P said in a note to clients.

"A no-deal Brexit could result in negative revisions of our outlooks on ratings where a weaker UK economy could lead to weaker credit metrics and downgrades where disruption is more immediate and material," the ratings agency added.

(Reporting by David Milliken; Editing by Alistair Smout)

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First Published: Feb 06 2019 | 8:24 PM IST

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