S&P downgraded the credit rating of the EU after Brexit

S&P on 30 June announced that the credit rating of the European Union downgraded from AA+ to AA due to the fact that the majority of participants in the referendum in great Britain voted to exit EU. In the document published by the Agency States that the unity of the EU, which was previously regarded as a positive factor in determining the rating, is now evaluated as a neutral factor. S&P experts pointed out that earlier scenarios of further development of the European Union stipulated that no country to come out of it will not.

In addition, the UK will inevitably require new difficult negotiations on budget funding and long-term planning that will contribute to instability. Taking into account the fact that Britain has contributed a considerable share in total budget (for this indicator, the country ranked third after Germany and France).

The Agency indicates the Outlook for further rating change is “stable”, because even in the event of a British exit from the EU budgetary commitments of the EU will remain at the current level. In addition, S&P expects that the other 27 countries will remain part of the European Union.

June 27, S&P downgraded Britain’s credit rating at once on two lines: from the highest AAA to AA with negative Outlook. A “negative” Outlook, 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.