LONDON, March 30 (Xinhua) -- Rating Agency Fitch affirmed the European Union (EU)'s Long-term Issuer Default Ratings at "AAA" on Wednesday.
According to Fitch Ratings, the EU's Short-term Issuer Default Ratings at "F1+". The Outlooks on the Long-term IDRs are Stable.
Fitch said the ratings of the EU is entirely based on the support entities received from their 27 member states, which have a high credit quality overall. At end of March 2011, nine EU member states were rated "AAA"/"F1+" by Fitch. The ratings also take into account the highly conservative and prudential rules set up by these two institutions on their lending and borrowing activities.
Following the 2008-2009 financial crisis, the EU has massively increased its lending capacity. The EU is a supranational administrative body created to foster the integration of its 27 member states. It has full legal personality and can raise funds under its own name to fund its lending activity. Borrowings were previously made under the name of the European Community.
Editor: Lu Hui