Leading ratings agencies S&P and Fitch have upgraded their outlook for the British economy following Johnson’s victory in the recent general elections over the reduced possibility of a disruptive, no-deal Brexit. While S&P has brought Britain back to stable from negative, Fitch has removed Britain from its watch list for negative ratings.

However, Fitch still maintains a negative rating for a broader outlook about the British economy. After the Conservatives came back to power with a resounding victory, there is considerable optimism in markets that Britain could indeed leave the EU on January 31, 2020, ending years of uncertainties on Brexit.

However, ratings agencies and global markets remain unconvinced that Britain will be able to finalize trade agreements within the transition period deadline which ends on December 31, 2020 – less than a year after Britain’s departure from the EU. S&P remains hopeful that the British government could request an extension on the transition period to avoid the harmful effects of a possible no-deal Brexit, but so far, Johnson has maintained that this will be respected as a hard deadline.