Ratings agency Moody’s has issued a dire verdict on a no-deal Brexit, warning it would damage the UK’s economy and government, hit companies from carmakers to chemicals manufacturers and weaken banks’ credit quality and profits.

The firm, which previously downgraded the UK’s rating in September 2017 to Aa2 due to Brexit uncertainty, also warned of “a further deterioration in the UK sovereign’s economic and fiscal strength” from no-deal. It made no ratings change.