Investors Worldwide Take S&P’s European Downgrades In Stride

Tuesday, January 17, 2012 09:45
Investors Worldwide Take S&P’s European Downgrades In Stride

Tags: European zone | S&P | world economy

The European bailout fund saw little fallout from Standard & Poor’s downgrade, which followed the agency’s late-Friday downgrade of nine European countries.

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The European Financial Stability Facility issued six-month debt for the first time Tuesday, selling a healthy $1.9 billion worth of securities a day after the fund lost its top credit rating, BusinessWeek reported.

S&P’s bailout fund downgrade was a consequence of its previous European downgrades, since the fund is backed by the credit of member countries.

Most analysts believe flurry of European downgrades already had been taken into account in world markets, and don’t expect the actions to affect markets significantly.

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