EU Membership Referendum May Negatively Affect UK Credit Rating – Moody's

An in-out referendum on UK membership of the European Union is one of the main threats to Britain's stable Aa1 sovereign rating, Moody’s rating agency said in a report, published on Monday.

MOSCOW (Sputnik) – The vote on whether the United Kingdom remains within the union is expected to take place by the end of 2017.

A possible British exit from the union may threaten UK economic growth opportunities and pressure the country’s sovereign rating due to reduced UK access to the EU market, the research indicates.

Another significant risk to the UK rating is its ongoing decentralization process, devolving wider fiscal powers to UK regions, the study revealed.

Moody’s forecast that the UK economy will continue to grow through 2015 and 2016, while its government debt is expected to reach a record level of 91.5 percent of GDP in 2016.

Before winning the May 7 general election, UK Prime Minister David Cameron pledged to hold a referendum on EU membership and revise Britain's relations with the union in the event of his party being returned to office.