The EFSF and ESM said in a statement late on Friday that they took note of Moody's decision but did not agree with it. "We disagree with the rating agency's approach which does not sufficiently acknowledge ESM's exceptionally strong institutional framework, political commitment and capital structure," said Klaus Regling, managing director of the ESM and chief executive of EFSF. Moody's had announced it would review the Aaa rating of the two funds after the downgrade of France. The euro pared most gains versus the U.S. dollar in late Friday trade after Moody's downgrade. (Reporting By Robert-Jan Bartunek)