S&P Affirms U.K. Ratings At 'AAA'; Outlook Negative

(RTTNews) - Standard & Poor's maintained the sovereign ratings of the U.K. with 'negative' outlook late Friday.

The negative outlook continues to reflect the view that the forthcoming referendum on the U.K.'s membership of the EU is likely to be a close call and could result in a vote to leave.

The rating agency cautioned that the possibility that the U.K. could leave the EU as a consequence of a planned referendum represents a significant risk to the U.K. economy.

If the U.K. were to leave the EU, it may make financing its twin deficits more difficult, S&P noted.

"That said, our affirmation of the rating reflects our assumption that, by a small majority, the referendum will deliver a vote to remain in the EU, as well as our opinion that the U.K. benefits from its large, diversified, and open economy, exhibits high labor- and product-market flexibility, and enjoys credible monetary policy," the agency said.