Is the EFSF next in line for downgrade?

Fidelity Worldwide Investment's group chief investment officer has warned the European Financial Stability Facility (EFSF) is next in line to be downgraded by ratings agencies.

Dominic Rossi said speculation around the EFSF's credit rating will intensify following the raft of downgrades dished out by Standard & Poor's at the end of last week. Rossi (pictured) said the downgrades of France and Austria - which both lost their prized AAA-ratings - casts doubt over the creditworthiness of the EFSF. "While the downgrade to France may not be too surprising to markets, it is still disappointing news that will drag down the euro and equity markets," said Rossi. "Speculation around an EFSF downgrade will now grow, complicating its ability to raise capital and disp...