ASSOCIATED PRESS COVERAGE

May 25, 6:56 AM EDT

S&P: Britain's EU vote could jeopardize pound's standing


Latest Business News
Business Highlights

US economy showing signs of life after slow start to year

How the Dow Jones industrial average fared on Friday

Stocks rise to wrap up a strong week as banks move higher

Ulta Salon, FEI and Vanda Pharma rise while Terex slumps

Multimedia
A district summary of the Beige Book
Measuring economic stress by county nationwide
Mall malaise: shoppers browse, but don't buy
Unemployment by the numbers
Family struggles with father's unemployment
Saying an affordable goodbye
Hard times hit small car dealer
Latest Economic News
US economy showing signs of life after slow start to year

EU launches effort against 'grey economy' of undeclared work

Puerto Rico senators override veto, halt tax increase

New Zealanders to pay $20 for cigarette pack under tax plan

Bank of Canada: Economy will shrink due to Alberta wildfires

S&P: Britain's EU vote could jeopardize pound's standing

Belt-tightening in Brazil aimed at fighting economic crisis

Cuba to legalize small and medium-sized private businesses

German investor confidence down amid concern over UK vote

Eurozone economy displaying mixed signals

Interactives
Greece's Debt Threatens to Spread
State budget
gaps map
Auto industry problems trickle down, punish Tennessee county
Women give old Derby hats a makeover in tough economy
S.C. town deals with highest unemployment in South
How mortgages were bundled and sold as securities
Tracking the $700 billion financial bailout
Tracking the year's job losses
State-by-state foreclosures since 2007
Credit crisis explained
Presidents and their economic legacies
Lexicon of the financial crisis
Americans' addiction to debt

LONDON (AP) -- Ratings agency Standard & Poor's says a vote to leave the European Union could jeopardize the pound's standing as an international reserve currency, potentially threatening the country's credit rating.

The warning comes amid another dire report on the impact on Britain's economy. The Institute for Fiscal Studies says the U.K. could face two more years of austerity in the event Britain votes to leave the 28-nation bloc on June 23.

S&P analyst Frank Gill says that a British exit from the EU could deter foreign direct investment and "other capital inflows."

A reserve currency is held by governments of other countries as part of their foreign exchange reserves and is considered as safe to use to pay off foreign debt.

© 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.