NEW YORK, Sept 12 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
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.