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Debt Crisis: Ratings agency Fitch warns it could downgrade EFSF bailout fund


Christine Lagarde

Christine Lagarde

Christine Lagarde

RATINGS agency Fitch has warned it could downgrade the European Financial Stability Facility or bailout fund.

It added that the fund could lose its AAA rating if either France or Germany lost theirs.

"The AAA rating on debt issues of the European Financial Stability Facility largely depends on France and Germany retaining their AAA status," the company said in a statement.

It added that its decision last week to turn “negative” on France had implications for the bailout fund.

The warning came as International Monetary Fund chief Christine Lagarde said that the world economy is at a "very dangerous juncture.”

Speaking at her first visit to Africa, in the Nigerian city of Lagos, she added that this could have an impact on poorer nations.