The European Stabilization Mechanism (ESM) has just started functioning. However, Moody’s has already received the highest rating possible – Aaa. However, the forecast is negative.
The reason for such a decision is the fact that the major donors of the ESM are the European countries with highest credit ratings and liquid capital. The negative forecasts correspond to the credit ratings of most ESM participants except Finland.
At the same time, Fitch, another major rating agency, has also awarded the ESM with the highest rating with a positive forecast.
For reference, the idea of creating the European Stabilization Mechanism emerged a couple of years ago. The fund is created to support needy debt-ridden European economies, exchanging money for structural reforms and austerity plans. So far, this seems to be the only weapon of fighting the continued eurozone crisis.
