Egan-Jones affirms German rating at A-plus, but cut could loom
NEW YORK, Sept 12 |
NEW YORK, Sept 12 (Reuters) - Rating agency Egan-Jones on Wednesday affirmed Germany's sovereign credit rating at A-plus, but warned the euro zone's biggest economy could see a cut as the ratio of debt-to-gross domestic product grows.
The agency's move came the same day that Germany's Constitutional Court gave a green light for the country to ratify Europe's new bailout fund, boosting hopes for a solution to the region's three-year-old debt crisis.
The end result of the ruling, Egan-Jones said in a statement, "will be higher liabilities for Germany, and a decline in overall credit quality. However, we believe the market will see this as a positive, although from an economic and fiscal standpoint significant damage will be done to Germany."
Accordingly, "we expect to cut as Germany's adjusted debt to GDP grows," the statement added.
Moody's Investors Service rates Germany Aaa with a negative outlook. Both Standard & Poor's and Fitch rate the country AAA with a stable outlook.
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