Moody's cuts AAA rating of ESM rescue fund

Moody’s cut the AAA rating of the European Stability Mechanism euro rescue fund on Friday by one notch and gave it a negative outlook, citing its earlier downgrade of key ESM backer France.

The French downgrade on November 19 “reflects the rating agency’s view that there has been a marginal diminution in the certainty that the sovereign will fulfill its financial obligations” including its commitment to support the ESM.