...In the nationwide referendum on the U.K.'s membership of the European Union (EU), + the majority of the electorate voted to leave the EU. In our opinion, this outcome is a seminal event, and will lead to a less predictable, stable, and effective policy framework in the U.K. We have reassessed our view of the U.K.'s institutional assessment and now no longer consider it a strength in our assessment of the rating. The downgrade also reflects the risks of a marked deterioration of external + financing conditions in light of the U.K.'s extremely elevated level of gross external financing requirements. The vote for "remain" in Scotland and Northern Ireland also creates wider + constitutional issues for the country as a whole. Consequently, we are lowering our long-term sovereign credit ratings on the U.K. + by two notches to '##' from '###'. The negative outlook reflects the risk to economic prospects, fiscal and external + performance, and the role of sterling as a reserve currency, as well...
