The credit rating agency DBRS Ratings GmbH (Morningstar DBRS) downgraded the long-term outlook for the European Financial Stability Facility (EFSF) from “stable,” while maintaining the Fund’s credit rating at the top “AAA” category.
The outlook for the short-term credit ratings remains “Stable.”
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The Canadian agency conducted an unscheduled credit rating review of the EFSF (the scheduled review is set for 2027) in order to assess the impact of the change to "Negative" from "Stable" of France’s outlook, one of the EFSF’s key guarantors.
On September 18, 2026, Morningstar DBRS had placed “Negative” the outlook for both the long-term foreign and local currency ratings (both at the AA level) and the short-term ratings of the French Republic.
DBRS states that the change in the outlook from “Stable” to “Negative” regarding the EFSF’s long-term ratings exclusively reflects the change in France’s outlook from “Stable” to “Negative.”
It notes that the EFSF’s credit ratings depend directly on the Support Assessment (Support Assessment) received by the organization and reflect the unconditional and irrevocable guarantees and over-guarantees provided by the euro area member states, as defined in the EFSF Framework Agreement, the creditworthiness of the EFSF’s guarantors, and the strong commitment of member states to support the organization.
Morningstar DBRS defines the group of core EFSF guarantors as Germany (AAA, Stable), France (AA, Negative), Italy (A (low), Stable), and Spain (A (high), Stable). These four guarantors are the largest in terms of guarantee size, and each represents more than a 10% contribution to the EFSF on an individual basis, while collectively they account for 83% of all guarantors.
“Credit ratings may be downgraded if there is a deterioration in the creditworthiness of the group of core guarantors or a substantial weakening of the cohesion of the core member statesor the strength of their political commitment to the Monetary Union,” it emphasizes.
It notes that the outlook for the EFSF’s long-term credit rating could return to “Stable,” if the outlook for France’s credit ratings returns to “Stable.”
According to the Canadian agency, the creditworthiness of the primary guarantors is critical to the EFSF’s credit ratings.
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