Downgraded: U.K. loses perfect AAA credit rating, by Matt Egan.
Standard & Poor’s downgraded the U.K. by two notches to AA on Monday….
S&P warned that Brexit will “weaken the predictability, stability and effectiveness” of British policymaking and deter foreign investment in the U.K. The ratings firm said Brexit may also lead to a “deterioration” of the British economy — especially its vitally-important banking industry — and could even trigger a “constitutional crisis” if there is another referendum on Scottish independence.
S&P kept a “negative” outlook on the U.K., signaling more downgrades are possible. The ratings firm said another downgrade could be triggered if the pound sterling loses its status as a leading reserve currency, public finances deteriorate, the British economy slumps more than feared or if Scotland holds a referendum.
Brexit has changed the equation so much that S&P said it no longer considers Britain’s institutions to be a strength.
S&P also warned that there are now higher risks of a “marked deterioration” in the U.K.’s ability to meet its “extremely elevated” borrowing needs. The firm notes that the U.K. has the highest financing needs among all 131 countries it rates, at nearly twice the level of the U.S. and France. …
The U.K. now has a worse rating from S&P than the U.S. S&P famously lowered the U.S. rating by one notch to AA+ in 2011, setting off financial turmoil.
Keep in mind that these people are in the backpockets of the elite, and failed totally in the lead-up to the 2008 crisis. They’re part of the elite consensus of politicians, lapdog press, big banks, and lobbyists.