Fitch: Brexit would increase downside risks to EU sovereigns

The US ratings agency, Fitch, published their latest note on Brexit on Monday:

We would not expect to take any immediate negative rating actions on other EU sovereigns if UK left

Negative actions would become more likely in medium term if economic impact were severe or significant political risks materialized

EU countries could gain from shift of some FDI from UK to EU

Brexit could precipitate Scotland leaving the UK which might intensify secessionist pressures in other parts of EU such as Catalonia in Spain

Brexit could boost ant-EU, other populist political parties, make EU leaders reluctant to implement unpopular policies with long-term economic benefits