Britain Loses AAA Credit Rating

Written on the 28 June 2016 by Lana Reed

Britain has suffered further blows to its economic standing as two top ratings agencies downgrade its sovereign credit score, judging last week's vote to leave the European Union will hurt its economy.

Standard & Poor's removed Britain's coveted AAA status, downgrading it by two notches with a long-term negative outlook.

"The Brexit result could lead to a deterioration of the UK's economic performance, including its large financial services sector, which is a major contributor to employment."

Fitch cut its credit rating by one notch from AA+ to AA, with a negative outlook.

It lowered Britain's economic growth forecast to 0.9 per cent in 2017 and 2018 from 2 per cent previously.

Britain voted by 52 per cent in favour of leaving the EU last week, in a result that has hit European markets and sent the British pound tumbling to a three-decade low against the dollar.

Following the vote, fellow ratings agency Moody's cut Britain's credit rating outlook to "negative" but kept its overall rating at a high "Aa1".

Source:  AFP/Reuters