Ratings agency Fitch has downgraded the European Union's bailout fund - the European Financial Stability Fund (EFSF) - to AA+ from AAA.
Following the downgrade of France's IDR [Issuer Default Rating], the EFSF's long-term debt issues are not fully covered by 'AAA' guarantees and over-guarantees and, for debt issued before October 2011, by the cash reserve. However, short-term debt issues remain entirely covered by guarantees and over-guarantees issued by EAMS [euro areas member states] rated 'F1+'.
Fitch assumes there will be progress in deepening fiscal and financial integration at the eurozone level in line with commitments by euro area policy makers. Fitch also assumes that the risk of fragmentation of the eurozone remains low.