Tag Archives: ESFS

Bailout Fund Not So Stable: Fitch Downgrades Credit Rating Of European Stability Facility

16 Jul

Emptied your bank account yet?

The global ratings agency Fitch has downgraded the eurozone’s temporary bailout fund from AAA to AA+, following its downgrading of France’s credit rating.

On Monday, Fitch announced that the European Financial Stability Facility’s (EFSF’s) had lost its credit rating, saying that France’s downgrading had had a “high weight” on the EFSF fund’s credit status.

“EFSF’s ratings rely on the irrevocable and unconditional guarantees and overguarantees provided by euro area member states,” the ratings agency said in a statement.

On Friday, Fitch announced that France had lost its top credit rating, citing concerns about the lack of growth and the buildup of government debt in the second largest economy of the European Union.

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