| The permanent European rescue fund won’t allay investors’ concerns about peripheral nations’ debt restructuring and may not prevent sovereign downgrades in the short term, Fitch Ratings said.
“For so long as the ‘solvency’ of peripheral” countries is “in doubt, the introduction of the ESM from July 2013 as a senior creditor, combined with the political commitment to ensure private sector ‘burden-sharing,’ potentially heightens rather than diminishes market fears of a sovereign debt restructuring, including on currently outstanding debt,” Fitch wrote in a report today in London.............................................Full Article: Source
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