OREANDA-NEWS. Rated UK companies face many unknowns at this early stage in the Brexit process, including timing and the framework of negotiated trade terms, Fitch Ratings says. Our analysis will include lower UK and EU growth prospects, but near-term rating actions directly related to Brexit are unlikely until we know where negotiations are headed and companies' reactions.

The UK's exporting manufacturers are awaiting details on the likely trade framework. Tariffs for non-food products have historically not been high, but there are the hidden costs of export paperwork, compliance with new EU standards, and addressing a UK cost base without the benefit of cheaper workers. All these factors will favour larger companies with economies of scale rather than small to medium-size enterprises.

Some sectors are also dependent on a co-ordinated framework for EU participants. These include airlines, via the Single European Aviation Market Agreement, and pharma via the European Medicines Agency. But domestic economic regulation already encompasses relevant EU issues for UK telecoms and utilities.