Financial Times

Financial Times

Credit Benchmark shows Global banks wary on UK over Brexit concerns

Global banks have turned more cautious towards the UK as a potentially economically disruptive vote on EU membership looms in June, according to a rating agency.

Credit Benchmark, an agency that aggregates the internal lending risk assessments of big international banks and uses them to devise ratings, said that lenders had turned slightly more cautious towards the UK earlier this year.

Credit Benchmark cited in FT article on UK loan market developments

Banks are pushing some companies seeking to borrow money in the UK to agree that the cost of their debt can rise if the country votes to leave the EU next month.

The introduction of “flexit” clauses into loan documents, allowing banks to increase the interest rate they charge in the event of Brexit, underlines fears that borrowing costs will jump if Britain votes to leave the EU.