EFSF’s Regling says downgrade won’t affect lending capacity

Klaus Regling, head of the EFSF says the downgrade will not diminish the €440B lending capacity of the bailout fund. This was not the market view, as there was talk of the threshold dropping to €270B:

“The EFSF has sufficient means to fulfill its commitments under current and potential future adjustment programmes until the ESM becomes operational in July 2012.”