EFSF rating in spotlight as speculation on eurozone downgrades emerges
Eurozone markets slumped on Friday after it emerged that Standard & Poor's (S&P), a ratings agency, planned to strip France of its coveted AAA rating, sparking fears of a possible downgrade for the eurozone bail-out vehicle, the European Financial Stability Facility (EFSF). Austria and other countries are also rumoured to be receiving ratings cuts.
The news stunned equity markets. The Cac 40 index in Paris dropped 2.5% before recovering most of its gains and traded only 0.11% lower on the day
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