Ratings agencies Moody's and Standard & Poor's said today that they were keeping their top-level credit ratings for the British economy despite an unclear result from the general election.
'The outcome of the UK general election does not directly threaten the UK government's Aaa rating,' Moody's Investors Service said in a statement, after results showed that no single political party had won an outright majority.
But Moody's said the lack of a one-party majority would 'undoubtedly create political uncertainty in the short and perhaps also the medium to longer term.'
And S&P said it would 'review the rating after we have assessed the details of the new government's medium-term fiscal strategy'.
'Our focus is on whether the government's fiscal consolidation plan to be unveiled in due course is likely or not, in our view, to put the UK government debt burden on a secure downward trajectory,' it added.
Meanwhile, sterling plunged to its lowest level against the dollar in over a year earlier this morning amid uncertainty over Britain's new government following a close-fought general election.
The pound hit $1.4476 this afternoon - its lowest level since April 2009 - as it became certain that the opposition Conservatives had failed to win an absolute majority in parliament.
UK election outcome awaiting by Irish businesses
Irish business representatives say an enormous amount is hanging on the outcome of the British election.
With Britain still the largest single market for Irish products and almost a fifth of the assets being transferred to NAMA based in the UK, economists say the result will have considerable relevance for the Irish economy.
Economists say that whoever gets the top job at Westminster will influence the performance of sterling. A strong pound means Irish exports will be cheaper on the British market, while a weak pound will appeal to cross border shoppers.
Britain and Northern Ireland still accounts for more than a fifth of our total international trade. The value of our exports and imports with Britain and the North amounted to more than €27 billion last year. This compared to just over €50 billion with the rest of Europe and €25 billion with the USA.
One group who will be paying particular attention to the election's outcome is the Irish food and drink exporters. They say they have suffered badly over the last two and a half years due to fluctuations in the sterling - euro exchange rate.
The election result will also have implications for the Irish taxpayer as more than 20% of the assets being transferred to the National Asset Management Agency are based in Britain. The bulk of these are in London.
