S&P cuts EU supranational long-term rating to AA+

Fri Dec 20, 2013 1:00am EST

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Dec 20 (Reuters) - Standard & Poor's on Friday cut its supranational long-term rating on the European Union to AA-plus from AAA, citing rising tensions on budget negotiations and following cuts to the ratings of member states in recent months.

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

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

S&P has had a negative outlook on the EU since January 2012 and has since cut its ratings on members France, Italy, Spain, Malta, Slovenia, Cyprus and The Netherlands

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