- Fitch Ratings: No-deal Brexit disruption is still a risk for UK corporates
Market news
26 September 2019
Fitch Ratings: No-deal Brexit disruption is still a risk for UK corporates
- "In the longer term, an extended period of trading on World Trade Organization terms would act as a drag on corporate performance due to the impact of tariffs and non-tariff barriers."
- "The greatest pressure would be felt by small, unrated companies due to their lack of diversification, limited preparedness, and fewer options to adapt."
- "On a sector level, we view manufacturers with complex supply chains, such as carmakers and aerospace companies, as particularly exposed to near-term disruption. Retailers, particularly those with significant imports from the EU, and airlines would also be among those facing pressure from a combination of a weaker pound, lower consumer confidence, falling demand and border disruptions."
- "The current end-October exit date also creates fresh challenges. Auto manufacturers that shut down for annual maintenance in April 2019 (around the previous exit date) will not be able to easily repeat this planning, exposing them to greater risks of supply-chain disruption."
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