Fitch Ratings today affirmed Germany’s credit rating at AAA with a stable outlook, citing a decline in the debt level of Europe’s biggest economy.
“Germany continues to have the components of a declining public debt path,” Fitch said in a statement. “The economy is growing, the budget position is relatively favorable and nominal interest rates are low.”
Standard & Poor’s on Jan. 10 affirmed Germany’s AAA credit grade and the stable outlook for the rating. Germany had the outlook for its Aaa rating lowered to negative by Moody’s Investors Service in July 2012.
Bond markets often disregard rating and outlook changes. France’s 10-year yield, which was 3.08 percent when S&P removed its top rating in January 2012, tumbled to a record low 1.66 percent last year. The rate was 2.42 percent at the market close yesterday.
Chancellor Angela Merkel’s government plans to eliminate the federal budget deficit in structural terms -- adjusted for one-time effects and economic swings -- this year and stop adding new debt from 2015.