S&P Maintains EFSF's Ratings

(RTTNews) - Standard & Poor's Ratings Services maintained the sovereign ratings of European Financial Stability Facility on Friday.

The agency kept credit ratings of the bailout fund at 'AA/A-1+' with 'negative' outlook.

The EFSF was established as a temporary rescue mechanism in mid-2010 under a multilateral framework agreement among Eurozone member states. On October 8, 2012, the European Stability Mechanism replaced the EFSF.

The ratings reflect the EFSF's obligations are fully covered by irrevocable, unconditional and timely guarantees provide by sovereigns with 'AA' or above ratings, S&P said.

The ratings on the EFSF do not depend on the credit quality of its borrowers, namely Greece, Ireland, and Portugal.

However, S&P said the outlook indicates the negative outlook on the Republic of France, the second largest guarantor of the EFSF.