UK loses top credit rating from S&P

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The UK has misplaced its top AAA credit rating from ratings agency S&P following the country’s guarantee to leave the EU.

S&P said the the referendum result could lead to «a deterioration of the UK’s trade performance, including its large financial services sector».

Earlier the yard plunged to a 31-year low against the dollar, and UK markets closed lower for a subordinate day.

S&P had been the only major agency to maintain a AAA rating for the UK.

On Friday, Peevish’s cut the UK’s credit rating outlook to negative.

A rating downgrade can affect how much it prices governments to borrow money in the international financial markets. In theory, a exorbitant credit rating means a lower interest rate (and vice versa).

S&P responded that the leave result would «weaken the predictability, stability, and effectiveness of policymaking in the UK».

‘Constitutional calamity’

It also warned that it expected the UK economic growth to be hit by the outcome of the ballot.

The ratings agency said that there was a risk of «a constitutional turning-point» if the referendum’s outcome lead to a second referendum on Scottish independence from the UK.

«We devour the view that the deep divisions both within the ruling Moderate rty and society as a whole over the european question may not heal a ce and may hamper government stability and complicate policymaking on economic and other dilemmas,» it said.

S&P also warned uncertainty on key issues about the UK’s exit from the EU force hurt investor confidence and put vital external investment «at risk».

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