European officials clarified today that the European Financial Stability Facility still has enough funds to fight back the debt crisis in spite of the downgrade by Standard & Poor's rating agency.
Klaus Regling, chief executive officer of the European Financial Stability Facility, said in an e-mail yesterday that the EFSF has sufficient means to fulfill its commitments under current and potential future adjustment programs,
Yesterday, Standard and Poor's rating agency downgraded the credit rating of the European Financial Stability Facility by one notch to AA+ as the funds provided by France and Austria worth less now after they were downgraded on Friday by one notch each.
The EFSF's obligations are no longer fully supported either by guarantees from EFSF members rated AAA by S&P, or by AAA rated securities, S&P said. Credit enhancements sufficient to offset what we view as the reduced creditworthiness of guarantors are currently not in place.