S&P cuts UK's prized AAA credit rating to AA on Brexit vote

Concerns about 'wider constitutional issues'

Ratings agency Standard & Poor's has announced tonight it has cut the UK's sovereign credit rating by two notches from AAA to AA with a negative outlook, following the UK's decision to leave the EU.

S&P warned the referendum result could lead to "a deterioration of the UK's economic performance, including its large financial services sector". "In our opinion, this outcome is a seminal event, and will lead to a less predictable, stable, and effective policy framework in the UK. We have reassessed our view of the UK's institutional assessment and now no longer consider it a strength in our assessment of the rating," the ratings agency said. "The downgrade also reflects the risks of a marked deterioration of external financing conditions in light of the UK's extremely elevated level...