Estimated read time: 1-2 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
BRUSSELS (AP) - The Standard & Poor's rating agency stripped the European Union of its triple A credit rating in the wake of a bitter budget battle and the debt problems afflicting a number of its members.
However, Friday's one notch downgrade to AA+ is unlikely to cause too many problems for the world's biggest trading bloc. Though a downgrade can sometimes make it more expensive to borrow money on bond markets, a rating of AA+ is still considered very solid.
EU's Commissioner for Economic and Monetary Affairs Olli Rehn said he disagreed with the rating agency and insisted that "all member states have always and also throughout the financial crisis provided their expected contributions to the budget in full and in time."
Rehn stressed that "the EU rating with the two other major rating agencies Fitch and Moody's is AAA."
The EU borrows money to lend to member states, other countries and some programs. S&P said loans to Ireland and Portugal _ which received bailouts _ represent 80 percent of the EU's outstanding loans.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)