The downgrade reflects DBRS Morningstar’s view that the Coronavirus Disease (COVID-19) will materially impact the U.K.’s economy and public sector finances in the context of an already slowing economy and expansionary fiscal policy related to Brexit. While the U.K. is a highly flexible economy, the disruption caused by EU exit will slow the pace of recovery relative to other countries and will delay fiscal re-balancing. The debt-to-GDP ratio is now expected to rise from 85.4% in 2019 to 104.4% by the end of this year, 111.0% by end-2021 and 113.7% by end 2022, according to the European Commission (EC). By contrast, ... (full story)