S&P, cut rating UK doesn’t mean the same treatment for EU countries

S & P has no plans to cut the sovereign ratings of other EU countries following the 'leave' victory in the British referendum last week. The statement was made by the head of sovereign ratings agency Moritz Kramer, during a video conference.

On Monday, according to the result of the referendum, S & P had cut two notches its assessment on the UK, to AA from AAA, maintaining a negative outlook.

Only in the coming weeks decisions on possible downgrade of British banks it will be taken. The banking analyst Giles Edwards explained that there will be no automatic changes, adding that "the same way as this is not our baseline scenario where we will see the need to change the ratings we will do in the coming weeks".

In the same video conference the chief economist Jean-Michel Six EMEA agency said that the UK will avoid going into recession, following the vote for Brexit, if the Bank of England will cut rates and stimulate its purchase program asset.

"We have a significant slowdown but growth remains positive although, of course, in a much more disappointing. This is because we anticipate a very strong response of monetary policy by the Bank of England, in the form of an additional quantitative easing and in the form of an additional cutting interest rates,"  Six said.