Moody's revises Germany outlook to stable from negative; affirms AAA sovereign rating
- The key drivers for today's outlook change are: (1) Diminished risks that Germany's government balance sheet will be affected by further collective support to other euro area countries, in particular to Italy (Baa2 stable) or Spain (Baa2 positive), along with reduced contagion risks within the wider euro area. (2) Progress with respect to fiscal consolidation as reflected in nearly balanced budgets in 2012 and 2013 and a declining debt-to-GDP ratio. (3) Diminished risks that Germany's government balance sheet will be affected by a further crystallization of contingent liabilities from the German banking system.
- Moody's has affirmed Germany's Aaa rating due to the country's advanced and diversified economy, very high debt affordability and a history of stability-oriented macroeconomic policies.