LONDON - Ratings agency Standard & Poor's removed the United Kingdom's coveted AAA status on Monday because of its vote to leave the European Union, downgrading it by two notches with a negative outlook.
Traders in the Standard & Poor's 500 stock index options pit at the Chicago Board Options Exchange signal offers at the open of trading on June 23, 2016 in Chicago, Illinois
"In our opinion, this outcome is a seminal event, and will lead to a less predictable, stable, and effective policy framework in the UK," a statement from the agency read.
The Brexit result will lead to a “less predictable, stable, and effective policy framework in the UK,” the ratings agency wrote in a statement on Monday.
The downgrade also reflects the risks of a marked deterioration of external financing conditions in light of the UK’s high external financing requirements, it said.
Besides, the vote for “remain” in Scotland and Northern Ireland creates wider constitutional issues for the country as a whole.
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 and public receipts. The result could also trigger a constitutional crisis if it leads to a second referendum on Scottish independence from the U.K.