Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Economy
In reply to the discussion: STOCK MARKET WATCH - Tuesday, 17 January 2012 [View all]Demeter
(85,373 posts)38. Europe Bailout Fund Says It Has Enough Cash to Deal With Sovereign Crisis
http://www.bloomberg.com/news/2012-01-16/s-p-cuts-efs-facility-to-aa-from-aaa.html
European officials said the euro regions temporary bailout facility has enough funds to deal with the sovereign debt crisis after losing its top credit rating at Standard & Poors.
The EFSF has sufficient means to fulfil its commitments under current and potential future adjustment programs, said Klaus Regling, chief executive officer of the European Financial Stability Facility, said in an e-mail late yesterday. S&P cut its rating on the EFSF to AA+ from AAA. The first test of the cut will come at 12 p.m. in Brussels when the EFSF sells bills.
The EFSF, designed to fund rescue packages for Greece, Ireland and Portugal partially with bond sales, owed its AAA rating to guarantees from its sponsoring nations. Two of those sovereigns, France and Austria, were cut on Jan. 13 to AA+ from AAA by S&P, which also downgraded seven other euro countries.
The EFSFs obligations are no longer fully supported either by guarantees from EFSF members rated AAA by S&P, or by AAA rated securities, S&P said. Credit enhancements sufficient to offset what we view as the reduced creditworthiness of guarantors are currently not in place.
European officials said the euro regions temporary bailout facility has enough funds to deal with the sovereign debt crisis after losing its top credit rating at Standard & Poors.
The EFSF has sufficient means to fulfil its commitments under current and potential future adjustment programs, said Klaus Regling, chief executive officer of the European Financial Stability Facility, said in an e-mail late yesterday. S&P cut its rating on the EFSF to AA+ from AAA. The first test of the cut will come at 12 p.m. in Brussels when the EFSF sells bills.
The EFSF, designed to fund rescue packages for Greece, Ireland and Portugal partially with bond sales, owed its AAA rating to guarantees from its sponsoring nations. Two of those sovereigns, France and Austria, were cut on Jan. 13 to AA+ from AAA by S&P, which also downgraded seven other euro countries.
The EFSFs obligations are no longer fully supported either by guarantees from EFSF members rated AAA by S&P, or by AAA rated securities, S&P said. Credit enhancements sufficient to offset what we view as the reduced creditworthiness of guarantors are currently not in place.
Edit history
Please sign in to view edit histories.
78 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
RecommendedHighlight replies with 5 or more recommendations
"If President Obama is serious about saving the middle class and reducing income inequality..."
jtuck004
Jan 2012
#11
Second MF Global Unveiled As Canadian Regulator Accuses Barret Capital Of Commingling Client Funds
DemReadingDU
Jan 2012
#50