S&P cuts EU’s ‘AAA’ credit rating

Credit agency Standard & Poors cut its triple-A rating of the European Union by one notch on Friday,saying it had concerns about how the blocs budget was financed,a view EU leaders and other officials dismissed as misguided.

Standard & Poors announcement came the day after the EU reached a deal to overhaul the regions banking sector,a pact many commentators said fell short of expectations,although S&P said it had not factored into its credit assessment.

In our opinion,the overall creditworthiness of the now 28 European Union member states has declined, the rating agency said.