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.
