Standard & Poor's on Wednesday affirmed Germany's top credit rating, citing its competitive and export-oriented economy, but said it is struggling as a top credit. "Germany is falling behind its 'AAA'-rated peers in terms of fiscal and economic performance," S&P said in a statement.
The ratings outlook is stable, S&P said, adding, however, that despite the affirmation and stable outlook, the country was struggling to retain its ratings.
"Growth prospects are and remain among the weakest in the rating category, and the economy is only slowly recovering from three years of standstill, held back by structural obstacles to employment and productivity growth," it added.
S&P affirmed Germany's "AAA" long-term and "A-1-plus" short-term sovereign credit ratings.
S&P also said Germany's prosperity is helped by high productivity that offsets high unemployment.
S&P said the next few years will be crucial regarding whether Germany holds on to its top credit ratings.
"The coming years offer the last chance to mitigate the long-term fiscal implications of Germany's aging population in a manner that is not socially disruptive," S&P said.
Comments
Comments are closed.