(Reuters) – Ratings agencies Standard & Poor’s and Fitch scaled back their warnings that Britain might suffer a new credit downgrade, saying Prime Minister Boris Johnson’s emphatic election victory last week reduced the risk of a no-deal Brexit next month.
FILE PHOTO: The sun sets behind the Canary Wharf financial district of London, Britain, December 7, 2018. REUTERS/Simon Dawson/File Photo
S&P raised Britain’s outlook to stable from negative while Fitch took the country off its rating watch negative list although it kept its broader outlook at negative.
Johnson won a bigger-than-expected parliamentary majority in last week’s election, breaking the deadlock in Westminster over how or even whether to proceed with Brexit. Britain is scheduled to leave the European Union on Jan. 31.
Johnson now plans to pass legislation to prevent the country asking for an extension to a Brexit transition period which is due to expire on Dec. 31, 2020.
Many trade experts say that leaves too lit