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 today that would maintain a negative outlook on each. The moves follows downgrades of the EFSF’s second-biggest contributor after France lost its top grade at Moody’s and Standard and Poor’s this year. Investors often ignore such ratings actions, evidenced by the drop ... (full story)