Moody's: Terms of post-Brexit transition deal are credit positive, but uncertainties remain

US credit ratings agency, Moody's Investors Service, is out with a report on last week's draft Brexit transition deal, saying that the terms of agreement are credit positive, yet remains conditional on final conclusion of the withdrawal.

Key highlights:

   •  The agreement reinforces Moody's view that the impact of Brexit will be manageable for rated UK corporate issuers, despite increased bureaucracy costs under an FTA. 

   •  For UK banks the agreement is mildly positive to the extent that it reduces downside risks to growth and revenues. 

   •  As far as the risk of a disorderly withdrawal is somewhat mitigated, the agreement reinforces Moody's central scenario of gradually moderating growth in the UK. 

   •  Uncertainty concerning the terms of UK's future long-term relationship with the EU will prevail until a conclusive final agreement is reached.