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S&P cuts EFSF credit rating after eurozone downgrade

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S&P cuts EFSF credit rating after eurozone downgrade

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The rating agency Standard & Poor’s has downgraded the eurozone’s EFSF bailout fund by one notchfrom AAA to AA+. The move was expected after S&P cut the ratings of nine eurozone countries last week. ECB chief Mario Draghi is urging eurozone leaders to stand by their commitments.

He said: “It’s vital that the commitments made by the heads of state or government are implemented promptly and fully, particularly, but not exclusively, in relation to the EFSF and the ESM.”

Though expected, the downgrading is another blow to the struggling eurozone and puts more pressure on its leaders to put in place as soon as possible reforms agreed at a crisis summit in December.