Moody’s: ‘Dramatic’ Brexit hit to British airports

British banks will escape much harm, but a ‘no deal’ outcome for the UK, in its Brexit talks with the EU, would “significantly” damage the British economy and be a “dramatic” hit for its airports, aviation, and ports, in particular, Moody’s Investors Service said.

The report from the credit-ratings firm focuses on the implications for debt-raising of UK-based firms. Though it believes the UK and the EU will strike a deal, there remains a “substantial risk” that the UK would leave the EU in two years’ time, outside both the single market and the customs union.

A ‘no deal’ would mean the British economy would slow, or enter into an “outright recession”, and unemployment would increase, but some industries would fare worse than others. “Weaker macro-economic out-turns — including slower growth or outright recession, higher unemployment and inflation, and lower real wages — would clearly weigh on the credit quality of a wide range of UK issuers,” Moody’s said.