Britain still faces significant uncertainties about Brexit which will drag on the country's economy for some time with negative implications for borrowers, ratings agency Moody's said today.
A vote in parliament yesterday in favour of the Brexit deal struck by Prime Minister Boris Johnson showed the likelihood of Britain leaving the EU with a deal was higher than it had been for some time, Colin Ellis, Moody's managing director for credit strategy said.
"That said, significant uncertainties remain around the timing and eventual outcome of Brexit, which is likely going to weigh on spending, investment and hiring decisions in the UK for some time, a clear credit negative," he added.
While politicians approved Johnson's Brexit deal yesterday, they also rejected his plan to rush the legislation through parliament in time for the current October 31 deadline.
And US investment bank JPMorgan said today that if the European Union offered Boris Johnson a short Brexit extension then he would probably succeed in passing his Withdrawal Agreement Bill.
"It is easier to see that unanimity being established quickly around simply agreeing to the UK's request.
"But we are on the look-out for headlines suggesting France (and Barnier) think a shorter extension should be offered," the bank said.
"If the Council chooses to meet to decide a response to the UK request, we would expect their arguments to carry the day. And if offered a short extension, we would expect PM Johnson to return to his attempt to pass the WAB, and probably succeed in doing so," the bank added.
