The UK’s Aa1 credit rating could be at risk in the event of a vote to leave the European Union, ratings firm Moody’s has warned.
The firm said in a report that it could put the country’s rating on negative outlook, potentially heralding a downgrade. Large UK companies could also be at risk of a credit downgrade, which could lead to increased borrowing costs.
Foreign investors could be deterred by the prospect of long negotiations on future access to the EU and it could limit the profits of mainstream companies that trade with the EU. The impact on the banking and insurance sectors would be less than for other sectors, Moody’s said.
