BRUSSELS (AP) — Ratings agency Standard & Poor’s says that the deal between Britain and the European Union does not change the fact that it might downgrade Britain’s sovereign debt grade.
S&P has a negative outlook for Britain’s debt, and said Friday that would not change despite Friday’s deal, which will allow Britain and the EU to move on from discussing divorce issues to the key topic of trade.
The agency noted in a report Friday that “many issues are yet to be fully resolved.” S&P also says that the country’s debt grade is challenged by a slowing economy, a lack of a parliamentary majority for Prime Minister Theresa May’s Conservative Party, and a lack of consensus within the government on what Britain’s relationship with the EU should ultimately be.