S&P cuts United Kingdom rating to AA from AAA

Rating agency Standard & Poor’s lowered United Kingdom sovereign rating from ‘AAA’ to ‘AA’. The outlook on the long-term rating is negative.

S&P also cut to 'AA' from 'AAA' our long-term issuer credit rating on the  Bank of England (BoE).

“The downgrade reflects our view that the “leave” result in the U.K.’s referendum on the country’s EU membership ("Brexit") will weaken the predictability, stability, and effectiveness of policymaking in the U.K. and affect its economy, GDP growth, and fiscal and external balances,” said S&P in a statement.

“The Brexit result could lead to a deterioration of the U.K.’s economic performance, including its large financial services sector, which is a major contributor to employment and  public receipts. The result could also trigger a constitutional crisis if it  leads to a second referendum on Scottish independence from the U.K.,” S&P added. "Brexit could also, over time, diminish sterling's role as a global reserve  currency."