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Brexit would trigger prolonged uncertainty, EU import tariffs

A decision for the UK to exit the European Union (‘Brexit’) would result in prolonged uncertainty and would be credit negative for UK-based companies such as the car, manufacturing, food and beverage, and service sectors, Moody’s Investors Service said Monday. Many companies would likely curb investments until the implications of a Brexit become clear for trade, investment, regulations and labour costs were clear while the UK’s Aa1 credit rating would be at risk. There would also likely be EU tariffs on some imports to the EU until final permanent arrangements were negotiated.