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Quoting the Crisis
26/01/2012
“ Although Euro area member states “will explore the options” to keep the [European Financial Stability Facility]’s triple-A, we expect S&P will ultimately align the EFSF’s rating with that of France and Austria at AA . Indeed, in order to maintain the AAA rating of the EFSF, euro area policy makers would have to accept a reduction in the lending capacity of the EFSF by Eur169bn. Alternatively they would need to increase their guarantees significantly, something we believe unlikely at a time that the focus is shifting on the ESM [European Stability Mechanism]. „
(
Source:
ftalphaville.ft.com
)
Jacques Caillou, chief economist at RBS, quoted by Paul Murphy in FT Alphaville » RBS on those S&P downgrades
