Sean Egan, president of Egan-Jones Ratings Co., said Germany is putting its credit grade at risk if it commits to more aid for debt-strapped countries, Welt am Sonntag reported, citing an interview.
“We will look carefully at what financial commitments Germany makes in the coming weeks,” Egan told the German newspaper, according to an e-mailed pre-release today. “And if guarantees or credit lines are increased, we will act immediately,” he was quoted as saying.
It is “absolutely possible” for Germany to default, Egan said. “If Germany gives in now and doesn’t fight off the desires of other countries, it will go off the rails itself.”
Egan-Jones currently has an A- rating on Germany, according to the report.