Updated | S&P downgrades EFSF bailout fund

Credit rating agency Standard & Poor's has last night downgraded the EU's bailout fund from AAA to AA , sending shockwaves throughout the eurozone, and stalling negotiations with Greece for its next tranche of bailout money.

Asked about last night's S&P downgrade, Klaus Regling, chief executive of the European Financial Stability Facility told reporters in Singapore that the downgrade would not have much impact "so long as Moody's and Fitch don't follow suit".

And in another hostage to fortune, Regling said that "no country would be forced out of the euro area" unless the situation went "terribly wrong", and that the EFSF has "never had problems" selling its bonds.

Moody's said yesterday that it would make a decision on France's AAA by the end of March.

Fitch, though, has said it is likely to leave France on AAA with negative outlook until next year.