WASHINGTON (Sputnik) — The report noted that the United Kingdom and European Union will eventually reach an agreement to preserve most of their trade agreements, but emphasized that the long-term credit impact will depend on details such as market access, regulation and immigration.
"The UK's decision to leave the European Union will lead to a prolonged period of uncertainty that will weigh on the country's economic and financial performance and will be credit negative for the UK sovereign and other rated entities," Moody’s stated.
Additionally, the period of uncertainty during trade negotiations is likely to damage investment and consumer and business confidence.
Outside of the financial sector, high trade barriers and reduced demand could negatively impact airlines, manufacturers, food producers and telecommunication companies, the report concluded.
