S&P strips Britain of perfect AAA credit rating

London - S&P Global Ratings cut the UK's top credit grade by two levels after the country voted to leave the European Union last week.

S&P lowered the rating to AA from AAA, citing the risk of a less predictable, stable, and effective policy framework in the UK. The cut also “reflects the risks of a marked deterioration of external financing conditions” and constitutional issues arising from the majority of voters in Scotland and Northern Ireland having opted to remain in the EU.

The rating company left the UK on negative outlook, reflecting the risk to “economic prospects, fiscal and external performance, and the role of sterling as a reserve currency, as well as risks to the constitutional and economic integrity of the UK if there is another referendum on Scottish independence.”