Kroll Bond Rating Agency Publishes Comment on Brexit: Uncertainties Outweigh First Impressions

NEW YORK--(BUSINESS WIRE)--

Kroll Bond Rating Agency (KBRA) has released a new research report entitled "Brexit: Uncertainties Outweigh First Impressions." The report makes the following key points:

• In the wake of the UK's vote to leave the European Union last week, KBRA believes that the only certainty is that enormous amounts of time, money and other resources will be spent accommodating this change. For the U.S. and EU banks in KBRA's rated universe, there does not appear to be any suggestion of an immediate rating change.
• Among the chief immediate results of the UK referendum is that market volatility has increased and is likely to continue to be amplified by the announcements and events that will unfold over the next several years. Since the process is unfamiliar to both investors and political leaders, we think that there is a high likelihood that there will be surprises along the way.
• The currency weakness and political uncertainty in the EU will tend to add even greater upward pressure on the dollar, as investors seek shelter in the U.S. Even though many asset classes have shown marked price appreciation in recent years, hard assets, such as commercial real estate, may be poised for further gains due to increased foreign capital inflows to the U.S.

To view the report, please click here.

Follow us on Twitter!
@KrollBondRating

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

View source version on businesswire.com: http://www.businesswire.com/news/home/20160629005889/en/