Fitch confirms Germany AAA rating despite rising debt concerns
Fitch Ratings confirmed Germany’s AAA credit rating with a stable outlook, contrasting with warnings from the German Council of Economic Experts. The decision comes as deficits are projected to rise and Rheinmetall shares fall.
Fitch Ratings confirmed Germany’s AAA credit rating with a stable outlook on Friday evening. This decision contrasts with warnings from the German Council of Economic Experts, which projected a 100% debt-to-GDP ratio by 2040 and €300 billion in additional debt. Fitch acknowledges rising debt, with deficits projected at 4.2% in 2026 and 4.8% in 2027, and a debt ratio exceeding 70% by 2029. The hosts express skepticism about the rating’s longevity given the new budget and investment packages. Rheinmetall shares fell 6% for the second consecutive week, weighed down by news regarding a Czech ammunition manufacturer, a core business area for the company. The hosts argue that Fitch’s rating is surprising given the projected debt trajectory and the repurposing of investment packages, suggesting the rating agencies are trying to maintain AAA status for a shrinking group of countries.