The us rating Agency S&P downgraded today the long-term sovereign credit rating of the UK from the highest AAA to AA — that is just two lines. The Outlook on the rating Agency maintained a “negative”, which leaves room for further decline.
Together with the sovereign rating: S&P lowers long-term rating of the Bank of England, also from AAA to AA. Short-term sovereign rating of the United Kingdom maintained at A-1+.
The main reason for the sharp decline of the credit rating Agency has called a national referendum last week, the results of which the British were in favour of leaving the EU. “In our opinion, this was a momentous event, which will lead to a less predictable, less stable and less effective political solutions in the country, reads a statement from S&P. — We have revised our view on the organizational status of the UK and no longer consider it to their advantage.”
“Negative” the forecast of the Agency explains the increasing risks to the economy and budget, and the role of the British pound as an important reserve currency. In addition to the financial and economic challenges, S&P notes and political: for example, the threat of a new referendum on Scottish independence. Most Scots, unlike the English, spoke against leaving the EU.
On Friday, June 24, shortly after the publication of the referendum results, S&P called “unjustified” Britain’s credit rating at the highest level AAA, and another rating Agency, Moody’s, warned of a prolonged period of uncertainty, which will put pressure on the financial and economic condition of great Britain.