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

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

S&P Global says that though the claims were unlikely to be legally enforceable and a non-payment would not constitute a default, the EU’s rating could come “under pressure” if the UK did not settle its debts, Reuters reports.

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

“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.