Standard & Poor's downgrades EU bailout fund EFSF (by BBC News)

See http://www.bbc.co.uk/news/business-16586807: The credit 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.

S&P's downgrade of France and Austria on Friday meant there were not enough AAA rated guarantors for the fund to maintain its top rating.

The 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.