KBRA Affirms AAA / K1+ Ratings for the Federal Republic of Germany; Outlook Stable
6 Sep 2024 | Dublin
KBRA Europe (KBRA) affirms the Federal Republic of Germany’s long term-issuer ratings of AAA. KBRA also affirms the short-term ratings of K1+. The Outlook on the long-term ratings is Stable.
| This credit rating is an unsolicited credit rating | |
|---|---|
| With Rated Entity or Related Third-Party Participation | Yes |
| With Access to Internal Documents | No |
| With Access to Management | Yes |
KBRA’s affirmation of the ratings reflects Germany’s large, diversified and globally important economy, high degree of economic resiliency, strong governance and institutional framework, prudent policy environment, and healthy public finance position. Germany’s considerable fiscal capacity and high degree of financial flexibility are key considerations. Germany currently finds itself in a period of weak economic growth, which KBRA views as short-term, but equally faces challenging headwinds over the longer-term horizon. Public debt, relative to its recent past, will likely somewhat remain elevated over the short-term. Germany’s benchmark status and aforementioned financing flexibility significantly minimise credit risks. Germany has extremely strong access to liquidity, in KBRA's view. The Stable Outlook considers risks around energy supply, inflation, monetary policy, and their impact on economic growth and the public finances.
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