June 28, 2016 / 2:12 PM / 3 years ago

S&P: No other EU downgrades post-Brexit, will look at UK banks

The Canary Wharf financial district is seen in east London November 12, 2014. REUTERS/Suzanne Plunkett

LONDON (Reuters) - Standard and Poor’s said on Tuesday it had no plans to downgrade any other EU country in the wake of Britain’s Brexit vote and that it will decide if any UK banks ratings should be cut in the coming weeks.

“This does not lead to mechanical changes (in bank ratings),” S&P banking sector analyst Giles Edwards said on a webcast.

“But equally this (Brexit scenario) was not our base case... where we see a need to change ratings we will do so in the coming weeks.”

On other EU sovereign ratings, S&P’s global sovereign chief Moritz Kraemer said: “We have no intention of downgrading any other EU sovereign.”

S&P chopped the UK’s credit rating by two notches to AA and kept it on a ‘negative outlook’ on Monday in the wake of last week’s vote to leave the European Union. It was the first time it had ever made such a deep cut to a top-rated sovereign.

Reporting by Marc Jones; editing by Alistair Smout

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