S&P revises U.K., Bank of England to negative

Standard & Poor's said it revised its outlook on the United Kingdom to negative from stable and affirmed its unsolicited AAA/A-1+ long- and short-term sovereign credit ratings.

The agency also affirmed the AAA/A-1+ long- and short-term issuer credit ratings on the Bank of England and the AAA/A-1+ ratings on the debt program of Network Rail Infrastructure Finance plc.

The outlook on Bank of England was revised to negative from stable.

S&P said the outlook revision reflects its view that the decision of the newly elected Conservative majority government to hold a referendum on the U.K.'s European Union membership by 2017 represents a risk to growth prospects for the U.K.'s financial services and export sectors, as well as the wider economy.

The agency believes a possible U.K. departure from the European Union also raises questions about the financing of the U.K.'s large twin deficits and its high private short-term external debt.

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