S&P Downgrades EU Credit Rating

Credit rating agency Standard & Poor's has cut the long term credit rating of the European Union from the top grade of AAA to AA+.

"In our opinion, the overall creditworthiness of the 28 EU member states has declined," S&P said in a statement.

"In our view, EU budgetary negotiations have become more contentious, signalling what we consider to be rising risks to the support of the EU from some member states," added the agency.

The news comes against the backdrop of the ongoing European Council, as part of which eurozone finance ministers reached a deal on furthering the so-called EU banking union.

S&P has further commented that cohesion among EU members has lessened and that some might baulk at funding the EU budget on a pro-rata basis.

The overall downgrade follows cuts to the ratings of EU member states in recent months.

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