If E-bonds are a non-starter, and if the Germans are only committed to a pro-rated liability for anything that can go wrong within the Eurozone states, is it right for the CRAs to continue to rate the securities issued by any new facility as AAA? While Moody’s and S&P analysts may possibly ponder that question, the capital markets may well be moving towards another test of the issue. But again, there is a danger in thinking that they are only testing the size of the facility… more seriously they may be ultimately testing the nature of the legal guarantee behind the facility.
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