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Moody's: Negative Outlook on Downgraded Eurozone Rescue Funds

Nov. 30, 2012
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The ratings agency Moody's put a negative outlook on the eurozone's bailout funds along with a bond-rating downgrade issued late Friday in Frankfurt.

The European Stability Mechanism (ESM), which was inaugurated on October 8 as the eurozone's permanent rescue fund after a lengthy planning and approval process within the European Union, was downgraded by Moody's from Aaa to Aa1. The outlook for the ESM rating is negative, as it was before Friday's downgrade.

The European Financial Stability Facility (EFSF), a temporary bailout fund created in 2010 after Greece became the first eurozone country to need a full-fledged financial rescue, was likewise downgraded from from Aaa to Aa1, with a continued negative outlook, Moody's said.

Source: Copyright 2012 dpa Deutsche Presse-Agentur GmbH

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