LONDON (MNI) – Fitch Ratings has assigned the European Stability
Mechanism a Long-term Issuer Default Rating of ‘AAA’ with a stable
outlook, according to a statement issued Monday.
In its statement Fitch said that the ‘AAA’ rating reflects the
fact that the ESM has “exceptionally strong mechanisms for excercising
callable capital” and the fact that the fund is backed by high-quality
and liquid assets.
Fitch also said that the ESM’s relatively high capitalisation ratio
and the requirement that paid-in capital/reserves will always be equal
to at least 15% of outstanding debt also supported its ‘AAA’ rating.
The ratings agency also said that the ESM’s ratings will be
reviewed if any changes are made to the ESM treaty.
Fitch also reiterated that it would put the ratings of all eurozone
sovereigns on Rating Watch Negative if Greece were to withdraw from the
currency union.
“In the event that Greece were to exit from the eurozone, the
ratings of all sovereign and sovereign-rated entities in the eurozone,
including the ESM, would be placed on Rating Watch Negative as Fitch
re-assessed the broader political commitment to the euro and the
potential contagion and financial implications of a Greek exit,” Fitch
said.
–London Bureau; tel: +442078627492; email: ukeditorial@marketnews.com
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