S&P affirms Germany’s ‘AAA/A-1+’ ratings, outlook stable

The S&P Ratings has recently announced that it affirmed Germany’s sovereign rating at AAA/A-1 and maintained its outlook at stable.

Key quotes (via Reuters)

• Stable outlook on Germany reflects expectation of ongoing overall consensus on prudent fiscal and economic policies.
• Expects Germany to preserve strong budgetary and external positions during 2018-2021 amid solid, albeit moderating growth rates.
• Foresees Germany’s automotive sector making up for delayed production toward the end of the year.
• Germany’s large net external creditor position should allow the country to withstand even severe financial & economic shocks.
• Sees some weakness in Germany’s flagship manufacturing sector this year.
• Sluggish export growth likely reflecting concerns about rising protectionism but is also related to slower demand in Germany’s export markets.
• Key risks to the German economy are externally-driven.
• An external risk to Germany economy is a breakdown in Brexit negotiations  with U.K., which would increase risks to cross-border supply chains.