European Rescue Mechanism Loses AAA Rating

S&P futures are bleeding back down again after-hours as Moody's announces the downgrade of the EFSF and ESM from AAA to Aa1. "Moody's decision was driven by the recent downgrade of France to Aa1 from Aaa and the high correlation in credit risk which Moody's believes is present among the ESFS' and ESM's entities' largest financial supporters." Of course, this is nothing to worry about as we are sure that some Middle East sovereign wealth fund will still buy their bonds? Or China? Or Supervalu? *MOODY'S DOWNGRADES ESM TO Aa1 FROM Aaa, EFSF TO (P)Aa1 FROM Aaa Not entirely surprising given the underlying rating moves - but yet more AAA-rated collateral bites the dust. Full statement to follow: Moody's downgrades ESM to Aa1 from Aaa and EFSF to (P)Aa1 from (P)Aaa, maintains negative outlook on ratings ... Moody's decision was driven by the recent downgrade of France to Aa1 fr...