NEW YORK: Standard & Poor`s has changed the outlook for the European Union from stable to negative after the bloc`s support for Greece and following Britain`s decision to vote on leaving the EU, S&P repor te d on Monday.

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 alsosaiditexpected the Europeanbloc 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 315 billion euros over three years.

S&P`s concern over Britain is due to its outsized role in the 28-member EU.-AFP