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S&P's downgrades EFSF to AA+

Categories: Banking, Eurozone
S&P's downgrades EFSF to AA+

S&P's downgrades EFSF to AA+

Pictured: Klaus Regling

Standard and Poor's has downgraded the European Financial Stability Facility's long-term rating from AAA to AA+.

The ratings agency's move comes after its decision to downgrade nine eurozone countries, including France, late last week.

EFSF's short term rating by S&P remains at A-1+, while it continues to have the top long-term and short-term ratings by Moody's (Aaa) and Fitch (AAA). The fund said that neither agency had indicated that they will take any rating action for the EFSF in the immediate future.

"The downgrade to AA+ by only one credit agency will not reduce EFSF's lending capacity of €440bn," said Klaus Regling, CEO of EFSF. "EFSF has sufficient means to fulfill its commitments under current and potential future adjustment programmes until the ESM becomes operational in July 2012."

Categories: Banking, Eurozone