Standard & Poor's directed a new blow to the thin confidence in the market yet again in almost a day, where after it placed 15 euro zone countries on credit watch negative -which means likely a downgrade in the coming period- it stated today that the EFSF rating would likely suffer as the high triple-A rated nations suffer downgrades.
S&P placed the long term triple-A credit rating on the EU rescue fund on credit watch as well as it might be downgraded based on the outcome of the wide review for euro zone nations' credit rating.
S&P said in a statement Depending on the outcome of our review of the ratings on EFSF member governments, we could lower the long-term rating on the EFSF by one or two notches, if any.
For now S&P affirmed the short term credit rating for the EFSF at A-1+ but still that does not unwind the pressure that is now on the EU leaders to reach a good decision to fight the debt crisis and retain the top notch credit rating, and especially France that has been under mounting pressures in the past period.
The new rating on the EFSF said S&P will likely be the same as the lowest assigned to the EFSF member nations that are currently holding the triple-A rating (EFSF guarantor members) and are under review for possible downgrade which currently are Germany, France, the Netherlands, Finland, Austria and Luxembourg.