The ratings agency Moody's announced late Friday in Frankfurt that it had downgraded the euro zone's bailout funds from the top rating of Aaa by one notch to Aa1 on long-term debt. Both the European Stability Mechanism (ESM), the currency zone's newly minted permanent rescue fund, and the temporary European Financial Stability Facility (EFSF) were given continued negative rating outlooks by Moody's, raising the threat of further downgrades. After recent downgrades and negative outlooks imposed by rating agencies on numerous governments in the eurozone, the bailout funds' downgrades were not unexpected, according to a report of DPA.
