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Below are the key takeaways from S&P’s recently published report on the European Union, as reported by Reuters.

  • Supranational institution the European union ‘AA/A-1+’ ratings affirmed; outlook stable.
  • Outlook remains stable on view rounded average GDP-weighted rating on EU’s budgetary contributors to stabilize at current level for next 2 years.
  • Expect that remaining 27 EU members (assuming an exit by U.K.) will reaffirm their commitment to EU via pro-rated budgetary contributions.
  • Current economic, political instability stemming from eventual departure of UK slightly offset by positive development elsewhere among EU states.
  • Baseline expectation remains that wealthier EU members’ proportional contributions are likely to rise to replace lost net financing from UK.