UK's decision to cash the call brexit, ie leaving the European Union, "cause prolonged uncertainty and would be negative for the credit of British companies," the investment team at Moody's.
As discussed in its last report, it is likely that companies decide to hold their investments "until the implications on trade, regulation, labor costs and investment are unearthed."
Trade barriers also could cause suffering to the groups most dependent on imports from the EU as well as major exporters of automotive, food and service if an alternative treaty that restricts tariffs is not negotiated.
Nevertheless, Moody's believes that it will be at least two years before leaving UK becomes effective, a time they hope the country will use to materialize alternative arrangements to minimize damage. "In addition, we granted to British companies time to adjust to the new scenario," says the rating agency.
Although Moody's believes that both the EU and UK would do everything possible to minimize the effects of brexit, it argues that failure to reach agreement in the long term, revisions rating of UK companies could become profound. "It would barriers to trade, for example, up to 10% on cars, which would have a direct impact on company accounts.
On the European side, Moody's also sees the brexit as a negative element for your credit rating, since the departure of UK increase the risk of other Member States terminasen to leave the EU.