-Moody’s Says EFSF/ESM Rating Dependent On Remaining Aaa Guarantors
LONDON (MNI) – Credit ratings agency Moody’s has said that it will
assess whether Monday’s downgrade of France’s credit rating will
have any implications for the ratings of the European Financial
Stability Fund and European Stability Mechanism, both currently rated
Aaa with a negative outlook.
“Moody’s will assess the implications of the downgrade of the
French government’s rating for the EFSF’s and ESM’s ratings as a matter
of course, focussing in particular on whether the support available from
the remaining Aaa guarantors and shareholders is consistent with the
EFSF and ESM retaining the highest ratings,” Moody’s said in a statement
to MNI.
Last night Moody’s downgraded France’s government bond rating by
one notch to Aa1 from Aaa. The outlook remains negative.
The ratings action follows Moody’s decision on 23 July 2012 to
change to negative the outlooks on the Aaa ratings of Germany,
Luxembourg and the Netherlands.
At the time, Moody’s also announced that it would assess France’s
Aaa sovereign rating and its outlook, which had been changed to negative
on 13 February 2012, to determine the impact of the elevated risk of a
Greek exit from the euro area, the growing likelihood of collective
support for other euro area sovereigns and stalled economic growth.
-London newsroom 0044 20 7862 7499; email: ukeditorial@marketnews.com
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