Fitch Ratings has issued its report on UK: Rating Implications of Scottish Independence. The report explores the risk to the UK in the event of Scottish indepdence. The report acknowledges that the 'devil is in the detail', and the process and outcome of complex negotiations would impact the rating accorded to the United Kingdom. It outlines several key areas of concern:
- A higher public debt ratio which would hinder an upgrade of the UK's credit rating
- The process of debt repayment from Scotland, which is presumed to occur but would not be a liquid asset
- A worsening of external finances, especially a reduction in hydrocarbon export receipts
- Implications of a shared currency which might expose the UK to risk
- Relocation of UK financial firms to London which would increase cross-border financial exposures
The Scotsman provides an analysis of the report.