Ratings agency downgrades EU bailout fund

The credit ratings agency Standard & Poor's has downgraded the EU bailout fund to AA+ from AAA. The European Financial Stability Facility's (EFSF) rating is based on the ratings of the countries that guarantee it. S&P's downgrade of France and Austria on Friday meant there were not enough AAA rated guarantors for the fund to maintain its top rating. The move came as pressure mounted on Greece to break a deadlock in debt swap talks if it is to avoid an unruly default. The EU is currently looking for more investor support to bolster the bailout fund.