LONDON, April 28 Ratings agency Standard &
Poor's said on Friday that Britain's decision to leave the
European Union had created "a heightened risk" around the
country's large borrowing needs and could put strains on the
historic make-up of the United Kingdom too.
S&P, in a statement affirming the possibility of a further
downgrade Britain's sovereign debt rating which it cut after the
Brexit vote, said the U.K.'s gross external financing needs were
the highest among all 131 sovereigns rated by the agency.
"Despite our forecast for a slight narrowing of the current
account deficit, we still view the U.K.'s high external deficits
as a vulnerability, and we view an EU departure as a risk to
financing sources," the ratings agency said.
"We further think Brexit will continue to create challenging
political and constitutional issues around the unity of the
United Kingdom, especially if it results in a second referendum
on Scottish independence or increases tensions around Northern
Ireland," it said.
S&P cut Britain's top-notch AAA credit rating by two places
to AA shortly after last June's vote to leave the EU, saying the
country's capacity for effective and stable policymaking had
(Writing by William Schomberg; Editing by Alistair Smout)