S&P said the change to its EU rating was because the previous assessment was based on all 28 states remaining in the bloc. The rating action stems from S&P Global Ratings' view that the UK government's declared intention to leave the union lessens the supranational's fiscal flexibility, while reflecting weakening political cohesion. Our baseline scenario was previously that all 28 member states would remain inside the EU. While we expect the remaining 27 members to reaffirm their commitment to the union, we think the UK's departure will inevitably require new and complicated negotiations on the next seven-year budgetary framework. Going forward, revenue forecasting, long-term capital planning, and adjustments to key financial buffers of the EU will in our view be subject to greater uncertainty,