A leading credit ratings agency has warned that a British exit from the European Union could lead it to downgrade the creditworthiness of a number of other EU countries, including Ireland.
Fitch Ratings said Brexit would weigh on the other EU economies and increase political risks in Europe if the UK votes to leave the 28-nation bloc on 23 June.
Though it says it would not expect to change its ratings on EU countries in the near-term, it says such "negative actions" could become more likely in the medium-term if the economic impact of a Brexit proves "severe" or if "significant political risks" materialise.
Fitch has previously said that a vote for Brexit would trigger a review of Britain's AA+ rating.
Rival agency Standard & Poor's has also said that the UK faces a greater chance of a downgrade over the coming two years if it leaves the EU.
In today's Fitch report - 'Brexit' Would Raise Downside Risks to EU Sovereigns - the agency said the effect on Britain would depend on whether it negotiates a favourable or unfavourable exit if it leaves the European bloc.
The report said: "If favourable exit and trade agreements were reached swiftly, Fitch believes the effect would be mildly negative after initial market volatility.
"However, protracted negotiation resulting in unfavourable trade terms would be more negative."
The report said the countries most exposed to Britain leaving the EU would be Ireland, Malta, Belgium, the Netherlands, Cyprus and Luxembourg, all of whose exports of goods and services to the UK are at least 8% of gross domestic product.
Fitch added that a British departure from the EU would create a precedent for such a move, possibly boosting the appeal of anti-EU parties.
The precedent could be even more significant if Britain were to thrive outside the EU, Fitch added.
Fitch also noted that a vote for Brexit could also lead to Scotland leaving Britain, which might intensify nationalist pressures in other parts of the EU, such as Catalonia in Spain.
"Brexit could shift the centre of gravity of the EU, making it more dominated by the eurozone core, poorer, more protectionist and less economically liberal," Fitch said.
Though the potential economic impact of a British exit would be greater for the UK than the EU, Fitch said the impact on the EU would still be "palpable".
Fitch also highlighted the risk of a fall in EU exports to Britain.
The extent of that drop would depend on factors such as the speed and make-up of any ensuing trade deal between Britain and the EU and the extent to which the British pound falls against the euro.
A higher euro would make euro zone exports more expensive in Britain.
The agency added that EU countries do stand to make limited gains from a vote for Brexit, as companies from around the world opt to invest within the EU rather than Britain.
