Rating agency downgrades EU bailout fund

The credit ratings agency Standard & Poor's has downgraded the European Union bailout fund from triple A to double A plus.



The European Financial Stability Facility's 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 triple A rated guarantors for the fund to maintain its top rating.



The downgrade could affect the fund’s ability to raise money cheaply.



S&P said the Fund could regain its triple A rating if it obtained additional guarantees.