S&P downgrades EU to 'AA' on Brexit uncertainty

S&P Global Ratings downgraded the long-term credit rating of the European Union Thursday because of greater uncertainty following the U.K.'s vote to leave the EU. S&P lowered its rating to "AA" with a stable outlook from "AA+" with a negative outlook. In a statement, S&P said "the U.K. government's declared intention to leave the union lessens the supranational's fiscal flexibility, while reflecting weakening political cohesion." Recently, S&P stripped the U.K. of its "AAA" rating following the so-called Brexit vote.

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