Rating agency Standard & Poor’s (S&P), the only agency which had previously given the UK a AAA rating, just revised it down. S&P said the the referendum result could lead to “a deterioration of the UK’s economic performance, including its large financial services sector”. They say Brexit will “weaken the predictability, stability, and effectiveness of policy making in the UK”. This follows downgrades from Fitch – from AA+ to AA – forecasting an “abrupt slowdown” in growth in the short-term and Moody’s last Friday cut the UK’s credit rating outlook to negative.
A ratings drop is likely to raise the cost of Government debt on the international markets. Here is the pound US$ chart, which fell further on Monday to a 31 year low.
