Standard & Poor’s said on Friday that the top credit rating of Europe’s bailout fund, EFSF, depends on additional financial backing from Germany and the other three remaining AAA-rated euro zone countries.
Also known as European Financial Stability Facility, the fund has its AAA rating at risk after S&P stripped two of its guarantors, France and Austria, of their top credit ratings.
“If you have a greater commitment from the other countries, then the EFSF could retain its AAA rating,” John Chambers, the chairman of S&P’s sovereign rating committee, told Reuters Insider in an interview.
“If you’ve lost two of the six AAA guarantors, either they need to increase the backing from the four remaining AAA guarantors or they need to raise some cash buffers,” Chambers said.
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