Standard & Poor's cuts EU credit rating after British vote to leave

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Baku, July 2, AZERTAC

The European Union has suffered a downgrade of its long-term credit rating following the UK’s Brexit vote last week, according to The Guardian.

In a move that will increase the borrowing costs for the 28-member bloc, the credit ratings agency S&P said the EU should see its status as a safe haven for investors reduced to AA from AA+.

The agency said: “After the decision by the UK electorate to leave the EU … we have reassessed our opinion of cohesion within the EU, which we now consider to be a neutral rather than positive rating factor.”

International investors use credit agency reports to gauge the safety of their funds and the likelihood that their investments will become insolvent. Pension funds and other investors typically move their money to safe havens in times of uncertainty.

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