DUBLIN--(BUSINESS WIRE)--Aug 3, 2018--Kroll Bond Rating Agency Europe Limited (KBRA) assigns a AA+ issuer ratings to the United Kingdom of Great Britain and Northern Ireland (UK). KBRA also assigns K1+ short-term issuer ratings to the sovereign. The long-term ratings carry a Negative Outlook. The sovereign credit report is available .

Main credit support factors:

The UK’s large, advanced and wealthy economy benefits from very robust institutions and a high level of economic development. Reserve currency status of sterling and the depth of the domestic capital markets provide the sovereign with very strong access to liquidity. A robust government debt profile is a notable credit strength. Sound economic and fiscal framework.

Main credit concerns:

The future direction of the UK’s extensive commercial and financial linkages with the European Union post-Brexit are uncertain. An unusual degree of political uncertainty exists as Brexit has created deep divisions within the government, across the political divide and throughout society. The elevated government debt burden, with little scope for substantial correction, limits the government’s ability to respond to economic and fiscal shocks. Persistent current account deficits highlight excessive leverage and are suggestive of competitiveness pressures that may become more acute post-Brexit.

The sovereign ratings on the UK are supported by its large, advanced, wealthy and globally-competitive economy and sterling’s global reserve currency status. The primary rating constraint relates to uncertainties over the UK’s economic prospects upon leaving the EU. The Negative Outlook reflects the heightened degree of uncertainty and the possibility that Brexit could have more severe repercussions than currently envisaged.

The ratings are based on KBRA’s published on 10 May 2017. Weights used for assigning these ratings are described in the methodology used for this credit rating action.


Further disclosures relating to this rating action are available in the . Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at .

This is an unsolicited rating. The rated entity or related third party did participate in the rating process and KBRA did have access to the accounts and other relevant internal documents.

Related Publications: (available at )


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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

1 Unsolicited where the rated entity or a related third party did participate in the rating process 2 Unsolicited where the rated entity or a related third party did not participate in the rating process *With access to the accounts and other relevant internal documents **Without access to the accounts and other relevant internal documents

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CONTACT: Kroll Bond Rating Agency Europe Limited


Alan Madden, Director (Lead Analyst), Dublin

+353 (1) 669-2683



Joan Feldbaum-Vidra, Managing Director (Rating Committee Chair), New York

+1 (646) 731-2362



Van Hesser, Senior Managing Director, New York

+1 (646) 731-2305




SOURCE: Kroll Bond Rating Agency Europe Limited

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PUB: 08/03/2018 02:52 PM/DISC: 08/03/2018 02:52 PM