The S&P said the result would "lead to a less predictable, stable and effective policy framework in the UK", and flagged that the vote to remain in Scotland and Northern Ireland would create "wider constitutional issues for the country as a whole". Given successive governments have made protecting the rating an economic priority, such an abrupt collective downgrade represents yet another source of ignominy.
If there's any comfort in this, it's that the UK hasn't suddenly become a pariah of capital markets. The economic outlook for the country may have chilled, but the flight to UK gilts in recent days suggests the government's borrowing costs are unlikely to be seriously impacted by Brexit. And an AA rating still puts the UK on the same rating as Belgium and France.
The graphic above merely provides a visual illustration of the UK's credit rating versus its European neighbours. UK debt is still priced above the country average for the continent, though below S&P's AA+ stable rating for the European Union.
