S&P downgrades European Union from AA+ to AA –

downgrade

http://www.zerohedge.com/news/2016-06-30/sp-downgrades-european-union-aa-aa-full-text

First S&P downgraded the UK, now it’s the EU’s turn.

Long-Term Rating On Supranational Institution The European Union Lowered To ‘AA’ On Brexit Referendum; Outlook Stable

The European Union (EU) supranational borrows on the capital markets to lend  to member states and certain other governments on a back-to-back basis. The  long-term rating on the EU partly relies on the capacity and willingness of  its 28 members to support it. We currently rate the EU at ‘AA’.) OVERVIEW

  • 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+’.

RATING ACTION

On June 30, 2016, S&P Global Ratings lowered its long-term issuer credit rating on supranational institution, the European Union (EU), to ‘AA’ from  ‘AA+’. The ‘A-1+’ short-term rating was affirmed. The outlook is stable.

———-

oh..

the uk leaving has many different ramifications..

401

~ by seeker401 on July 4, 2016.

3 Responses to “S&P downgrades European Union from AA+ to AA –”

  1. Brexit Aftermath – Here’s What Will Happen Next

    http://www.alt-market.com/articles/2937-brexit-aftermath-heres-what-will-happen-next

    • As I originally stated in my prediction article:

      “…the failure of the EU does not necessarily mean a failure for the internationalists. For groups of globalists that promote an ideology of Fabian Socialism, a breakdown of the EU, whether partial or total, can be used as leverage for a larger and more centralized global power structure in the long term. Mark my words, when the system comes crashing down (whether after the Brexit or after another trigger event), internationalists will say that the EU failed not because it was centralized, but because it was not centralized ENOUGH.”

      “If the Brexit succeeds, the globalists can allow the market systems they have been inflating for years to finally crash (at the speed they choose). They can then blame those dastardly “far-Right extremists” in the U.K. for triggering a domino effect within the global financial system, conveniently scapegoating British conservatives, moderates and sovereigns for a breakdown that was going to happen eventually anyway. Their solution will once again be to argue for the end of “barbaric” conservative principles and install complete centralization and socialism as the cure.”

  2. Reblogged this on World Peace Forum.

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