EFSF faces markets with €1.5bn debt auction

Europe's bailout fund will attempt to auction off €1.5bn in short-term debt later today.

It comes after the ratings agency Standard and Poor's last night downgraded the EU bailout fund, the European Financial Stability Facility, from AAA to double AA+.

The EFSF funds rescue packages for Greece, Ireland and Portugal, but this downgrade is expected to affect the funds ability to raise money cheaply.

It is hoped that the €1.5bn in six-month debt can be auctioned off to help finance its Irish and Portuguese funding programmes.