UK taken down a peg or two
28 June 2016 London
Image: Shutterstock
Rating agencies S&P and Fitch have downgraded the UK鈥檚 credit rating in response to last week鈥檚 decision to leave the EU.
Multiple ratings agencies made threatening noises immediately following close-run result but S&P was the first to cut the UK down two places, from its stellar AAA rating to AA, shortly followed by Fitch, which took the country to AA from AA+.
The decision to downgrade its credit rating came was in part due to UK Prime Minister David Cameron resigning immediately following the Brexit vote, without triggering the formal process to leave the economic and political union. His successor will also not be named until 2 September.
S&P had previously stated it had no immediate plans to review the UK鈥檚 rating when the result was first announced, but the rating agency changed its mind on 27 June.
The UK continues to be on 鈥榥egative watch鈥� with Moody鈥檚 and Fitch.
Fitch also highlighted potential risk for Ireland鈥檚 credit rating due to the country鈥檚 association with the UK. Fitch upgraded Ireland to 'A' from 'A-' in February
鈥淭he UK vote to leave the EU is negative for Ireland, raising risks to growth and creating uncertainty around future relations with Northern Ireland," Fitch explained in a research note
Multiple ratings agencies made threatening noises immediately following close-run result but S&P was the first to cut the UK down two places, from its stellar AAA rating to AA, shortly followed by Fitch, which took the country to AA from AA+.
The decision to downgrade its credit rating came was in part due to UK Prime Minister David Cameron resigning immediately following the Brexit vote, without triggering the formal process to leave the economic and political union. His successor will also not be named until 2 September.
S&P had previously stated it had no immediate plans to review the UK鈥檚 rating when the result was first announced, but the rating agency changed its mind on 27 June.
The UK continues to be on 鈥榥egative watch鈥� with Moody鈥檚 and Fitch.
Fitch also highlighted potential risk for Ireland鈥檚 credit rating due to the country鈥檚 association with the UK. Fitch upgraded Ireland to 'A' from 'A-' in February
鈥淭he UK vote to leave the EU is negative for Ireland, raising risks to growth and creating uncertainty around future relations with Northern Ireland," Fitch explained in a research note
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