A nation feels humiliated. But enough about the English soccer team’s defeat by Iceland. The Brexit-related downgrades of the UK’s credit rating are a blow too, but more psychologically and politically than financially.

Standard & Poor's cut the UK a hefty two notches to AA from AAA on June 27 with Fitch following with a one-notch move to AA. Both have a negative outlook. The rationale is far from surprising: a more uncertain outlook for the UK outside the European Union, with slower growth and higher borrowing needs contributing to a heavier debt burden.