S&P Retains UK Rating With Negative Outlook

(RTTNews) - Ratings agency Standard & Poor's retained the U.K. at 'AA' level on Friday, but said the rating remained at risk of a further downgrade due to the uncertainty about the 'Brexit'.

The negative outlook suggests that the rating could be downgraded in future.

The 'Brexit' presents a significant risk to the U.K.'s track record of strong economic performance, and to its large financial sector in particular, the S&P said.

The 'leave' vote has also led to a less predictable and stable policy framework for the U.K., the agency added.

The S&P had stripped Britain of its triple-A credit rating late June after the surprise 'Brexit' vote, calling it a 'seminal' event.

The agency also warned that the pound sterling could loose its reserve currency status due to the economic and political problems.

In particular, the S&P said if the sterling's share of global central bank reserve holdings fall below 3 percent, that could strip the sterling of its reserve currency and lead to a sovereign rating downgrade.