S&P downgrades EU bailout fund

Ratings agency Standard & Poor's has downgraded the EU bailout fund to AA+ from AAA.

The European Financial Stability Facility's (EFSF) rating is based on the ratings of the countries that guarantee it. Following S&P's downgrade of France and Austria on Friday, there were not enough AAA rated guarantors for the fund to maintain its top rating, the BBC reports. The EFSF was set up to allow countries with top credit ratings to borrow money cheaply that they could then lend to struggling countries. This latest downgrade could affect the EFSF's ability to raise money cheaply. S&P said the EFSF could regain its AAA rating if it obtained additional guarantees. Alternativ...