25 July 2012

Statement following Moody's decision to change outlook on EFSF's rating

EFSF takes note of the decision by Moody's to change the outlook on the provisional Aaa long-term rating of the EFSF to negative from stable. The rating outlook has a time horizon of 12-18 months and therefore does not indicate any rating action for EFSF in the immediate future.

As noted in Moody’s announcement, the Aaa long-term and short-term ratings for the debt issuance programme of the EFSF remain unchanged, thanks to the EFSF's overcollateralisation of 165 per cent and the 62.2 per cent share of Aaa-rated countries in the EFSF's guarantor pool. EFSF issuance continues to be fully covered by Aaa-rated guarantees.

Klaus Regling, CEO of the EFSF, stated: "The negative outlook does not outweigh the fact that despite volatile market conditions the EFSF is a well-established and trusted issuer, as evidenced by our recent six-month bill, placed at a negative yield of - 0.0113 per cent."

Press release

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