EFSF, European Stability Mechanism Ratings Cut by Moody’s
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The European Stability Mechanism and European Financial Stability Facility were downgraded by Moody’s Investors Service, which cited a high correlation in credit risk present among the entities’ largest financial supporters.
The ESM was cut to Aa1 from Aaa, while the EFSF provisional rating was lowered to (P)Aa1 from (P)Aaa. Moody’s said in a statement that it would maintain a negative outlook on each. The EFSF has about 161.8 billion euros ($210.1 billion) of bonds outstanding according to data compiled by Bloomberg.