July 22, 2020 / 10:21 AM / 21 days ago

COVID recovery fund a 'breakthrough' for EU sovereign creditworthiness: S&P Global

LONDON (Reuters) - The European Union’s 750 billion euro post-pandemic recovery fund is a positive for the bloc’s sovereign ratings, agency S&P Global said on Wednesday.

One of S&P’s top sovereign analysts, Frank Gill, said in a new report that the political consensus in establishing the Fund and endowing it with debt-raising capacity, was a major step forward for the EU and the 19-country euro area in particular.

“In that respect, the EU Recovery Fund is positive for European sovereign credit quality and for the institutional effectiveness of all member states, especially those in the euro area.”

“The story is not over yet, but the establishment of a shared fiscal mechanism is a breakthrough for EU sovereign creditworthiness.”

Reporting by Marc Jones, editing by Sinead Cruise

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