Before the referendum vote on June 23rd, the rating agencies warned against an exit in a chorus, saying that it would bode difficulties and recession for the economy, while they would move to cut rates. However, that scaremongering seems to have not worked as the majority of the people voted in favor of an exit.

Now, they are issuing warnings one more and this time on the negotiations. Last week, the Moody’s rating agency warned that it would cut Britain’s Aa1 sovereign rating should the country fails to secure its access to the single market. According to the agency, losing access to the single market would reduce the growth prospect significantly in the medium term. It also added that Britain’s deteriorating public finance would add downward pressure to the rating.

The rating agency, Standard & Poor, which stripped the United Kingdom of its prized AAA rating in the aftermath of the referendum, has warned that a hard Brexit, I which the United Kingdom loses access to the EU single market is the most likely outcome. It expects the Brussels not to give up on the four principles of the European Union, one of which is the freedom of movement, which the United Kingdom is completely opposed to.