S&P cuts UK credit rating on Brexit fears

Whether this is case of punishment for exiting or actual concern remains to be seen, although the former is quite plausible. The S&P has in the past been used as an economic warfare tool by the American government to bend or break nations to its will.

See the source link for the video.


Standard & Poor’s on Monday downgraded the United Kingdom’s sovereign credit rating by two notches, from “AAA” to “AA,” citing last week’s referendum that approved a British exit from the European Union.

“In our opinion, this outcome is a seminal event, and will lead to a less predictable, stable, and effective policy framework in the U.K. We have reassessed our view of the U.K.’s institutional assessment and now no longer consider it a strength in our assessment of the rating,” the ratings agency said in a news release.

S&P also expressed concern that wide-margin votes to remain within the EU from Scotland and Northern Ireland create “wider constitutional issues for the country as a whole.”

The ratings agency said its downgrade notes the risk of a “marked deterioration of external financing conditions in light of the U.K.’s extremely elevated level of gross external financing requirements.”

S&P also warned that future events could result in further downgrades.

Full article: S&P cuts UK credit rating on Brexit fears (CNBC)

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