Van Rompuy: S&P rate cut will not affect euro rescue fund

European Council President Herman Van Rompuy claims Standard & Poor’s downgrade of Europe’s bailout fund will have no impact on the fund’s capacity.

11:09PM GMT 17 Jan 2012

Speaking at a news conference in Madrid with Spanish leader Mariano Rajoy, he said: “Standard and Poor’s decision, so-called decision, will not reduce EFSF landing capacity of fund of 440 billion.”

Yesterday S&P cut its credit rating of the EFSF fund by one notch to AA+, three days after it cut the ratings of two of the fund’s guarantors, France and Austria, by the same margin.

“EFSF has sufficient means to fulfil it’s commitments in the current and potential future, adjustment programmes and will continue to be backed by unconditional and irrevocable guarantees by euro area member states,” he said.

Mr Van Rompuy also said that the EFSF continues to be assigned the best possible credit rating by rating agencies Moody’s and by Fitch which underlined its solidity.

He did conceed that Europe needed to strive fiscal discipline to exit its debt crisis.

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