Brexit will be 'negative' for IoM - Moody's

Gloomy forecast but positive indicators

Credit rating agency Moody's says the Isle of Man is facing a 'high level of uncertainty' as the UK prepares to leave Europe.

In its latest Annual Credit Analysis, economists point to 'strong public finances' and persistent 'high wealth levels' - but the downgraded Aa2 Stable rating, imposed last October, remains in place.

Moody's maintains the Island could only have its rating increased again if the UK did too - which is 'unlikely' as the outcome of Brexit remains unclear.

Fiscal policies are praised for being 'forward-looking' and 'prudent', but a slowdown in economic growth is predicted over the next year, to a level of around 3%.

Efforts by Europe and the UK to clamp down on tax secrecy are also highlighted as a risk to the Island's finance sector.

But by far the biggest risk to the Manx pursestrings, according to the agency, is Brexit.

Though it should be 'manageable', it's envisaged the impact will be 'negative on balance' for the Isle of Man, both directly on economic output and indirectly through its effect on the wider British economy.