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D-FOX Developing Information

UK rejection of €60bn Brexit bill would hurt EU's credit rating - S&P

The European Union's credit rating could be downgraded if the UK refuses to pay the €60 billion obligation in the course of implementing the country's exit from the bloc, warns Standard & Poor's.

“The EU ratings could come under pressure in an adverse scenario. This is because our ratings on the EU are to a certain extent predicated on our 

expectation that the UK would honor its share of financial obligations to the EU,” S&P said in a report seen by the Telegraph.

EU officials are not only demanding Britain pay €60 billion as it quits the bloc but insist a settlement of the issue should be reached before any other stages of Brexit negotiations can start.

The so-called divorce bill is aimed at covering the costs of significant pension contributions and financial liabilities, according to Brussels.

The warning issued by the agency will reportedly make the EU even more steadfast when it comes to the matter, as it reveals the risks the bloc may face in case of a hard Brexit.

The EU has an AA credit rating, the second highest awarded by S&P. Previously the EU enjoyed the highest AAA rating but was downgraded shortly after the results of the UK referendum.

"Before you embark on a Journey of Revenge, Dig Two Graves" Confucius (504 bc)
“The darkest places in hell are reserved for those who maintain their neutrality in times of moral crisis.”
"If angry, count to ten. This will give you time to find a weapon." - Will Spencer
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