The ratings agency Moody’s has said Britain’s credit rating risks being downgraded again depending on the trade deal it negotiates with the European Union.<br /><br /> Moody’s is warning the UK’s growth prospects would be impacted by the so-called ‘Hard Brexit’ Prime Minister Theresa May has hinted at. <br /><br /> If she insists on controls on immigration in the negotiations then British companies could end up not having full access to the EU’s single market.<br /><br /> The ratings agency’s experts are concerned about growth and the increased cost for the government to borrow money. <br /><br /> “The UK’s Aa1 sovereign rating would be downgraded if the UK’s loss of access to the European Single Market following Brexit were to materially weaken medium-term growth and if the credibility of UK fiscal policy were to be undermined,” Moody’s said in a statement.<br /><br /> Moody’s issues Brexit warning #Brexit pic.twitter.com/1vnwYV0Lv1— Derek Gatopoulos (@dgatopoulos) November 2, 2016<br /><br /> They wrote that there could “a series of accords offering [Britain] access to the EU market for goods and more constrained access for services, in particular financial services”.<br /><br /> But added that “is far from certain”.<br /><br /> Moody’s downgraded the outlook on the UK sovereign rating to negative from stable one day after the referendum in June. <br /><br /> Its AAA status was removed in 2013, when Moody’s cited sluggish growth prospects and fiscal challenges.<br />
