Standard & Poor's downgrades EU bailout fund

[T_i_B]

http://www.bbc.co.uk/news/business-16586807

The credit ratings agency Standard & Poor's has downgraded the EU bailout fund to AA+ from AAA.

The European Financial Stability Facility's (EFSF) rating is based on the ratings of the countries that guarantee it.

S&P's downgrade of France and Austria on Friday meant there were not enough AAA rated guarantors for the fund to maintain its top rating.

The downgrade could affect the EFSF's ability to raise money cheaply.

[dipsydoodle]

1. Our UK TV news channels here

predicted this might occur during their analysis last Friday. I'd forgotten about it - thanks for the reminder.

Greece maybe say hello to plug hole because added to current issues concerning re-funding their debt this may well have a bearing on that.

[Yo_Mama]

2. It's more of a problem for Ireland and Portugal

I think this just makes official what everyone already knew. I seem to remember that the last EFSF bond auction was delayed and then did not go well - there were rumors that they had to buy part of the issue themselves through a bank. That was to raise money for Ireland.

Everyone already really knew this was going to happen, although I admit this does remove the ability to pretend. \

They are starting a new vehicle called the ESM, so now they are pretending that it will be different. How they do not explain.