Investing.com - Standard and Poor’s (S&P) chief sovereign ratings officer Moritz Kraemer repeated his warning that if the U.K. decided to leave the European Union (EU), known as a Brexit, in the June 23 referendum, the country’s triple-A rating would be at risk.
“Given the U.K.’s deep political, financial and trading ties in Europe, an exit would be much more fraught, and the risks, when it comes to its credit worthiness, are therefore considerably higher,” Kraemer explained in an opinion piece written for Politico.
He explained that a Brexit would result in a “protracted period of uncertainty” as the country debates the alternative and “this ‘working out’ period will likely have adverse credit consequences for the U.K.”
In this light, Kraemer insisted that the leave vote would “likely” lead to a downgrade to the U.K.’s triple-A rating.
“The U.K. would lose its place in the increasingly exclusive club of AAA-rated sovereigns,” he concluded.