S&P Strips U.K. of Triple-A Credit Rating

Standard & Poor’s Global Ratings stripped the U.K. of its pristine triple-A credit rating on Monday, following through on its warning that last week’s vote to leave the European Union threatens the country’s constitutional and economic integrity.

The firm, which cut the country’s ratings by two notches to double-A, also said the vote for “remain” in Scotland and Northern Ireland creates wider constitutional issues for the country as a whole.

Fitch Ratings followed suit, cutting the country’s ratings by one notch, also to double-A. The firm pointed to the uncertainty following the referendum outcome, which Fitch predicted would lead to “an abrupt slowdown” in growth as businesses defer investment.

The outlook on the ratings at both credit firms is negative, which signals a potential for additional downgrades.

The U.K.’s surprise vote to leave the EU has rattled stock, currency and debt markets around the world, and led to a political upheaval in the U.K.

http://www.wsj.com/articles/s-p-strips-u-k-of-triple-a-credit-rating-1467050234