Moody's: EU-UK Brexit agreement is positive, but faces significant hurdles

Assessing the draft Brexit agreement between the UK and the EU, Moody's noted that a number of challenges remained and the Brexit process would continue for some time.

Key quotes

• While today's announcement of an agreement represents a positive step on the path to a negotiated Brexit, it is far from the end of the process.
• Developments in the UK Parliament will be critical, and ultimately the value of the withdrawal agreement hinges on whether Prime Minister May can persuade a majority of MPs to support it in a parliamentary vote.
• If the UK parliament does not support the agreement then -- in the absence of further developments -- the EU and the UK will be heading for a no-deal Brexit by default.
  • That would have significant negative consequences for a range of issuers.
• Given the wide range of views among UK Members of Parliament (MPs), it is far from certain that a majority of MPs will vote in favour of the agreement.