2 Hours Ago|00:36
S&P Global Ratings said Thursday that it has lowered its long-term credit rating on the European Union to AA from AA+.
The ratings agency said it reassessed its outlook after the U.K. voted last week to leave the EU. S&P said this move "lessens the supranational's fiscal flexibility, while weakening political cohesion."
"We think that, going forward, revenue forecasting, long-term capital planning and adjustments to key financial buffers of the EU will be subject to greater uncertainty," S&P said in a statement.
S&P also said that its previous rating reflected its "baseline scenario was previously that all 28 member states would remain inside the EU."
The firm also said the outlook is stable.
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