DBRS Confirms the EU, EIB and EIF at AAA Following UK Referendum on EU

DBRS, Inc. (DBRS) has today reviewed the three supranational entities directly affected by the June 23 United Kingdom’s referendum on its membership of the European Union (EU). These are the supranational entities in which the United Kingdom of Great Britain and Northern Ireland (the UK) has been a core shareholder: the European Union (EU), the European Investment Bank (EIB), and the European Investment Fund (EIF), all currently rated AAA with a Stable trend.

DBRS reviewed the EU outside of the regular pre-announced calendar for European sovereigns as a result of the referendum. (DBRS does not classify the EIB or EIF as “sovereigns”, and therefore DBRS does not include these in our sovereign calendar.) DBRS views the outcome of the referendum, in which the majority of the British electorate voted to leave the EU, as significantly less favourable for both the UK and the EU. This outcome makes a return to financial market stability and a return to growth less likely in the near term. However, DBRS does not view the outcome as leading to an immediate decline in the UK’s creditworthiness.

The vote to leave the EU raises political uncertainty in the UK and across Europe, has disrupted global financial markets, and is likely to cause a sharp slowdown in UK economic growth. Despite this, DBRS is of the view that the UK can weather the shock and maintain its repayment capacity. On June 24, DBRS confirmed its ratings on the UK at AAA with a Stable trend.

DBRS will publish separate press releases on each of these credits.

The principal applicable methodologies are Rating Supranational Institutions and Rating Sovereign Governments, which can be found on our website under Methodologies.

A copy of the press releases are available by clicking on the link under Related Research or by contacting us at info@dbrs.com.