Standard & Poor’s and Fitch cut UK rating – Observer

The credit rating agency Standard & amp; Poor’s cut the rating UK on two levels, from AAA to AA, and lowered the outlook on the long-term credit risk of the country. The agency considers that the fact that the British have chosen to leave the European Union affects the predictability and stability of the UK

For the Standard & amp.; Poor’s, the result of the referendum “is a seminal event that will lead to less reliable, stable and efficient policy framework in the UK.” The agency believes that “the deep divisions both within the Conservative Party and in society can not heal quickly,” which will have consequences “on governmental stability and complicate the creation of legislation on the economy.”

The agency also says that the UK economy is expected to grow “significantly less” between 2016 and 2019 than originally planned.

This is the second credit rating agency to punish the British for the result of Thursday’s referendum . On Friday, Moody’s had also cut the outlook on the debt from “stable” to “negative.” In 2013, Moody’s had cut the rating British AA and Fitch to AA +. This time, Standard & amp; Poor’s dropped two levels, without stopping at AA +

Fitch equaled the rating from Standard & amp.; Poor’s and lowered from AA + to AA. The agency also believes that the referendum result will generate a wave of uncertainty “will induce an abrupt slowdown in GDP growth in the short term, as companies postpone investment and consider changes of the legal and regulatory environment.” The forecast of 2016 GDP growth was lowered from 1.9% to 1.6% and forecasts for 2017 and 2018 fell from 2% to 0.9%

Both the Standard & amp.; Poor’s and Fitch are concerned that the independence of Scotland.