Japan still backs EFSF despite threat to AAA rating

The expectation that Standard & Poor’s decision to downgrade France and Austria will have a knock-on impact on the EFSF will not deter further Japanese investment in its bonds, says Japanese official

The Japanese government is still committed to supporting the European Financial Stability Facility (EFSF), despite the likely loss of the bailout vehicle's AAA rating following the downgrade of both France and Austria by Standard & Poor's last week, according to Takehiko Nakao, vice-minister of international affairs for Japan's Ministry of Finance.

Standard & Poor's cut the sovereign credit ratings of France and Austria by one notch, from the top level of AAA to AA+, on January 13, as well as