CNBC reports that Egan-Jones lowered its credit rating on Germany to double-A minus from double-A, citing the nation's potential liabilities to Europe's rescue fund, the European Financial Stability Facility.
"One of the main underlying reasons is the potential liabilities that Germany is going to face with more and more European bailouts," said Bill Hassiepen, vice president and senior analyst at the Haverford, Pennsylvania-based ratings firm. "Look at the relationship between Germany and the EFSF stabilization fund, and Germany is slowing down. The prospects for Germany are not very good going forward."
Hassiepen, who made the decision to downgrade Germany jointly with firm principal Sean Egan, said Egan-Jones had cut Germany from the top level triple-A rating twice in mid-2011. Egan-Jones now rates Germany, Europe's strongest economy, three notches below the top of its ratings scale….
Read more at http://www.cnbc.com/id/46041820
No comments:
Post a Comment