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UK loses its AAA credit rating after voting Brexit

UK loses its AAA credit rating after voting Brexit

The UK was stripped of its last AAA rating as rating agency Standard & Poor's warned of economic, fiscal and constitutional risks the country is currently facing as a result of the EU referendum result.

The reduction of two degrees comes with a warning that S & P could lower its rating again. the vote as "a major event" which "leads to a stable and efficient policy framework less predictable in the UK" is described.

The agency said that the vote to stay in Scotland and Northern Ireland "creates wider for the country as a whole constitutional problems."

This reduction was quickly followed by a cut in the credit score UK rival agency Fitch.

Intensify pressure on the position of the United Kingdom on international markets, Fitch downgraded the UK to 'AA' from 'AA +'. The UK had already lost its best rating with Fitch back in 2013. The agency recently warned that Brexit could lead to a further reduction and also risked causing discord in the EU.

S & P was the last of the three major rating agencies to have a first-class rating in the solvency of the UK. Moody, who stripped the UK of its investment grade credit rating amid austerity in 2013, said last week it may further reduce its views of the United Kingdom.

The movements of the rating agencies have the potential to make it more expensive than the government borrows.

The movements are S & P and Fitch came after a steamy day in the financial markets. The pound hit a new low of 31 and 40 £ billion was wiped off the value of the largest companies in the UK on Monday, despite George Osborne's efforts to quell investors' concerns about the economic and political consequences Brexit the vote.
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