EU fund says all 3 agencies confirm its AAA rating

The European Financial Stability Facility said Saturday that all three ratings agencies -- Standard & Poor's, Moody's and Fitch -- have confirmed its AAA rating. The highest possible rating was confirmed on the basis of amendments decided in July that took effect on October 18, bringing the fund's lending capacity to 440 billion euros ($622 billion), with a guarantee commitment of 780 billion euros, EFSF said in a statement. The three agencies "affirmed the best possible credit rating," meaning AAA for S&P and Fitch and (P)Aaa for Moody's, the statement said two days after EU leaders decided in marathon talks on a complex plan to get Greece's debt under control and strengthen EU banks. The EFSF's short-term rating was also the highest possible, at A-1+ for S&P, (P)P-1 for Moody's and F1+ for Fitch, the statement said. "Confirmation of the highest possible credit rating shows the confidence in the strategy of the euro area to restore financial stability," said EFSF chief Klaus Regling in the statement. S&P, reiterating the AAA rating on Friday, said assigning a stable outlook reflected the "almost certain" likelihood that EU governments would back the EFSF "in the event of financial distress." But Fitch said that the 50 percent writedown of Greek debt held by banks -- another key facet of the deal -- could, despite claims to the contrary, see Greece ruled in default, possibly triggering a cascade of damage throughout the financial system due to the activation of default insurance contracts.