May resignation boosts chance of no-deal Brexit - Fitch

LONDON (Reuters) - British Prime Minister Theresa May’s decision to resign and heavy European Parliament losses for her Conservative Party increase the chance of a no-deal Brexit, ratings agency Fitch said on Wednesday.

“The scale of their electoral defeat will have a direct impact on the Conservative leadership contest. There is a risk that the contenders will conclude that leaving the EU under any circumstances, even with no deal, is the only realistic political option to regain voters’ support,” Fitch said.

Credit ratings agencies Moody’s and Standard & Poor’s both said after May’s resignation last week that this increased the chance of a no-deal Brexit.

Reporting by David Milliken; editing by Stephen Addison