Ratings agency Moody’s said on Tuesday it saw “clear downside risks” if Britain votes to leave the European Union in a referendum in June, and repeated its warning that this would make the country’s debt more vulnerable to a downgrade.
Moody’s concerns come alongside a report from consultants Oxford Economics which estimated that Britain’s economy could be almost 4 percent smaller than otherwise if it curbed inward migration after leaving the bloc.
Prime Minister David Cameron wants Britons to endorse continued membership of the 28-nation bloc in a referendum in three months’ time, but both his Conservative Party and public opinion are deeply divided.
Moody’s currently rates British government debt one notch below triple-A with a stable outlook, but said voting to leave the EU could lead to a negative outlook.
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