Pound drops as S&P cuts UK outlook to negative
- Outlook on the AAA-rating cut to negative from stable
The Queen is displeased.
Bids through 1.6100/1.6090 cleaned out with more at 1.6070/60 and stops below.
- S&P: One-in-three chance of a downgrade if economy weakens beyond expectations
- Debt-to-GDP expected to continue to rise
- Could lower rating in the next 2 years if fiscal performance weakens
- Sees real GDP avg 1.6% from 2013-2015
FItch and Moody’s already have a negative outlook on the UK.