EU credit rating at risk if UK doesn’t pay Brexit bill

The European Union’s credit rating is at risk if the UK does not pay its Brexit bill, which could be as much as €60bn.

S&P Global says the claims were unlikely to be legally enforceable and a non-payment would not constitute a default, Reuters reports.

“The European Union (AA-Stable/A-1+) ratings could come under pressure in an adverse scenario,” S&P says.

“This is because our ratings on the EU are to a certain extent predicated on our expectation that the UK would honour its share of financial obligations to the EU.”

S&P adds that the ratings of multilateral lenders that the UK pays into could also come under pressure.

These include the European Investment Bank, the Inter-American Development Bank, Council of Europe Development Bank, African Development Bank, and Eurofima.