REUTERS
International rating agency Standard&Poor's revised its outlook on the European Union credit rating from ‘stable’ to ‘negative’, according to American television channel CNBC.
The decision was motivated by the ongoing Greek debt crisis, combined with growing fears that the United Kingdom could vote to leave the European Union, according to the report.
The decision means the US ratings agency could lower its grade of the European Union -- now at AA+ -- in the next two years.
"The EU's repeated use of its balance sheet to provide higher-risk financing to EU member states (most recently including Greece), without the member states' paying in capital," was one reason behind the revised outlook, S&P said.
The agency also said it expected the European bloc would provide first-loss guarantees for lending under the so-called Juncker Plan. Named for the head of the European Commission, Jean-Claude Juncker, the stimulus plan is expected to roll out EUR 315 billion over three years.
Britain, Germany and France together are the largest contributors to the EU budget -- about 70% between them.