UK stripped of top credit rating following Brexit vote

Standard & Poor’s has stripped the United Kingdom of its top credit grade in the wake of the vote to leave the European Union.

The rating agency downgraded the country’s sovereign rating by two notches, from AAA to AA, saying the vote is a “seminal event” that “will lead to a less predictable, stable and effective policy framework in the U.K.”

READ MORE: British pound hits new low, U.K. bond yields lowest ever due to vote uncertainty

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It is also keeping a negative outlook on the rating, which means it could downgrade the country further.

WATCH: David Cameron mentions trade deal with Canada may be changed by Brexit vote

0:53 David Cameron mentions trade deal with Canada may be changed by Brexit vote

It added in a report published Monday that the outlook reflects the risk to the economy and public finances, as well as the pound’s role as an international reserve currency.

READ MORE: North American markets tank in early trading after British vote

It also cited “risks to the constitutional and economic integrity of the U.K.” as Scotland’s strong vote to remain in the EU could raise the prospect of another referendum on Scottish independence.