S&P warns on European bailout fund's AAA-rating

Standard & Poor's has warned it may downgrade the eurozone bailout fund's AAA-rating once its review of eurozone countries' own ratings is complete.

S&P announced this morning it is reviewing the credit ratings of 15 eurozone nations for potential downgrades, warning on the lack of progress made by eurozone policymakers in resolving the crisis. In particular it said France - the eurozone's second largest economy and a key backer of the European Financial Stability Facility (EFSF) - could be downgraded by two notches, while Germany and other nations may be downgraded by one notch. In light of that move, the ratings agency said this afternoon the EFSF's own AAA-rating could fall by one or two notches. S&P expects to complete its rev...