S&P says UK sovereign debt rating might come under pressure in 'no deal' Brexit

One of the world's top three credit rating agencies said a 'no deal' Brexit could see its rating for the UK's sovereign debt come under pressure should it complicate the outlook for the economy and fiscal consolidation.

"Our sovereign ratings on the U.K. could come under downward pressure if the economic recovery is significantly weaker than we anticipate, making fiscal consolidation more challenging," Standard&Poor's said.

S&P had a AA rating on the UK's long-term debt with a 'stable' outlook, having downgraded it by two notches in 2016 following the Brexit vote.

Key to the rating agency analysts' thinking was whether the UK lost access to European markets for its goods and services exports for a "prolonged" period.