LONDON, Feb 27 (Reuters) - Scotland would face a significantbut not unsurpassable challenge if voters back independence in areferendum later this year, ratings agency Standard & Poor'ssaid on Thursday.
While an independent Scotland would have the attributes of awealthy investment-grade economy, it would face high levels ofpublic debt, sensitivity to oil prices and potentially limitedmonetary policy flexibility, S&P said.
"At the same time, Scotland's external position in terms ofliquidity and investment could be subject to volatility shouldbanks leave," the ratings agency said in a statement.
"On the other hand, if this were to happen, it could bringbenefits in terms of reducing the size of the Scottish economy'sexternal balance sheet, normalising the size of its financialsector, and reducing contingent liabilities for the state."
Earlier on Thursday, insurance and pensions group StandardLife said it could move parts of its business out ofScotland if Scots split from the United Kingdom.
"In short, the challenge for Scotland to go it alone wouldbe significant, but not unsurpassable," S&P said.