KBRA Affirms AAA / K1+ Ratings for the Federal Republic of Germany; Outlook Stable
7 Mar 2025 | 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, strong governance, and healthy public finances. Key credit considerations include its significant fiscal capacity, financial flexibility, and robust institutional framework. While Germany is experiencing weak short-term growth, KBRA views this as temporary, though it recognises the longer-term challenges ahead. Germany’s benchmark status and financial flexibility minimise credit risks, with extremely strong access to liquidity. The government’s fiscal policy is expected to shift toward a looser stance with the anticipated reform of the debt brake. The Outlook also reflects the need for new political leadership to address challenges such as weak growth, geopolitical uncertainties, and a changing global economy.
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