Brexit: UK downgraded by S & P – Le Figaro

The rating agency S & amp; P announced early evening Monday it has deprived the UK the highest rating, the famous AAA, to lower by two notches. The referendum has opened the door to too much uncertainty justifies Standard & amp; Poor’s. Later, Fitch in its degraded turn the country’s rating

The rating agency S & amp; P has not dragged. While financial markets had on Monday a second storm day triggered by Brexit, Standard & amp; Poor’s announced Monday it lowered the sovereign rating of the United Kingdom. The State loses his famous “triple A”, this AAA rating, the best, indicating to investors that they can lend confidence to a country. S & amp; P’s downgraded two notches, suddenly, the British note, which goes to AA. Accompanied, not surprisingly, a “negative outlook”. Later, the financial agency Fitch in turn downgraded the country’s rating from AA + to AA with a negative outlook, which implies it could be lowered further in the coming months.

Main reason the title of the news S & amp; P early evening Monday: a “prolonged uncertainty”. The vote in favor of EU output is a “precursor event” that will lead to a political framework “less predictable and less stable.” The agency expects a deterioration in UK financing conditions and highlights the political uncertainty created by the favorable vote to remain in the EU of the Scottish voters and Northern Ireland.

“We believe that the lack of clarity (…) will weaken confidence, investment, GDP growth and public finances.” Standard & amp economists; Poor’s point out that the UK, which still has a high deficit in the balance of payments, will certainly undergo an increase in its funding cost.

automatic consequence of the revision of the sovereign rating of the the Bank of England is also lowered by two notches.

The announcement of this flash degradation by a major credit rating agencies could in turn feed on Tuesday triggered the downward spiral in markets Friday. In the European Union, Germany, the Netherlands, Denmark and Luxembourg are the latest countries to keep the maximum rating from Standard & amp;. Poor’s