S&P rating cut looms for EFSF

EUROPE’S financial stability facility could be downgraded because its guarantors’ credit ratings are all looking shaky, Standard and Poor’s said yesterday, endangering any future efforts to save indebted governments.

The warning came as French Prime Minister François Fillon claimed a Eurozone break-up could cost “25 per cent of GDP for the strongest countries and about 50 per cent for the weaker economies”.

Meanwhile, data agency Eurostat confirmed the currency union’s economies grew by just 0.2 per cent in the third quarter.