Posted by: youngragingbull | April 17, 2013

Egan-Jones cuts Germany from A+ to A, outlook negative

Egan-Jones Ratings Co. downgraded Germany to A from A+ over its exposure to its banks and weaker European Union members along with its growing debt-to-GDP ratio. The outlook is negative.

With Chancellor Angela Merkel opposing the shared liability of EU bonds, “Germany is likely to be outvoted by other ECB members and therefore will have greater prospective exposure,” Egan-Jones said.

The ratings agency estimated German debt will rise to 100% of GDP from just over 80% in 2011.

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