Eurozone rescue fund faces loss of AAA rating
Baku, January 16 (AZERTAC). Eurozone leaders looked set to abandon attempts to maintain the European bail-out fund`s coveted AAA credit rating, as German Chancellor, Angela Merkel, insisted rescue efforts could survive a downgrade of the fund.
The top rating of the European Financial Stability Facility (EFSF) was threatened by the downgrade of two of its guarantors, France and Austria, on Friday evening.
The decision, by ratings agency Standard & Poor`s (S&P), could wipe up to €170bn (£140bn) from the EFSF`s effective firepower, jeopardising its ability to bail out troubled eurozone economies.
S&P placed the EFSF on negative watch in December and yesterday said it would publish an opinion on its rating “very shortly” in light of the country downgrades. John Chambers, the chairman of S&P`s sovereign rating committee, said the EFSF could retain its AAA rating if Germany and the remaining top-rated guarantors increased their commitments.
