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    S&P downgrades EU to AA from AA+, outlook to stable from negative

    Standard & Poor’s rating agency downgraded the European Union on Thursday, to AA from AA , while placed the region under stable outlook from previous negative status.From S&P statement:“After the decision by the U.K. electorate to leave the EU as a consequence of the June 23 consultative referendum, we have reassessed our opinion of  cohesion within the EU, which we now consider to be a neutral rather than  positive rating factor.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.As a consequence, we are lowering our long-term rating on the supranational European Union to 'AA' from 'AA ' and affirming the 'A-1 '  short-term rating.The outlook is stable, reflecting our opinion that under most scenarios, including a U.K. withdrawal from future (though not current) budgetary   commitments, our anchor ratings on the EU will remain at the current level of 'AA/A-1 '.”


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