S&P Downgrades EU to AA Due to Brexit



Standard & Poor’s Global Ratings said on Thursday it had cut its long-term credit rating on the European Union to ‘AA’ from ‘AA+’ after the United Kingdom voted to leave the bloc.

“After the decision by the UK electorate to leave the EU…we have reassessed our opinion of cohesion within the EU, which we now consider to be a neutral rather than positive rating factor,” the agency said. (bit.ly/295BXgp)

The UK voted to leave the European Union last week, plunging global markets into turmoil.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza