S&P downgrades U.K.'s credit rating after Brexit vote

NEW YORK, June 27 (UPI) -- The United Kingdom no longer has an impeccable credit rating, thanks to Britons voting last week to abandon the European Union, one of the world's premier financial services firms said Monday.

Standard & Poor's Global Ratings on Monday downgraded Britain's credit rating from AAA to AA, which is precisely what many analysts feared would happen, even before Thursday's referendum vote.

Investors and experts have been worried for weeks that a departure from the 28-member coalition would destabilize the British government -- and inflict the economic "self harm" that Prime Minister David Cameron loudly proclaimed would come if voters opted out.

After nearly two days of substantial losses worldwide related to Britain's EU exit, or "Brexit," S&P formally declared Monday that the U.K.'s resulting fiscal predicament is less than ideal.

A rating of AAA means a party has an extremely strong ability to meet its financial commitments, whereas a AA rating reflects only a very strong ability.

Monday's move, actually, drops Britain's rating by two notches. After AAA, a rating of AA-plus is the second-highest mark, followed by AA and AA-minus.

S&P cited "a deterioration of the UK's economic performance, including its large financial services sector" as the reason for its downgrade. Analysts have known for days a reduced credit rating was possible. Friday, Moody's similarly said its British credit rating outlook was negative.

The British pound plummeted after the referendum, at one point to its lowest value in three decades.