Fitch confirms Germany AAA rating despite rising debt projections
Fitch Ratings maintained Germany’s AAA credit rating with a stable outlook, defying warnings from domestic economic experts. The decision stands in contrast to projections that the country’s debt-to-GDP ratio will reach 100% by 2040.
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. Skepticism persists regarding the rating’s longevity given the new budget and investment packages, with some arguing that rating agencies are trying to maintain AAA status for a shrinking group of countries. In related market moves, 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.