By Marc Jones
LONDON (Reuters) -Germany’s plan for a massive ramp-up in defence and infrastructure spending will be a “positive” for its prized triple-A sovereign credit rating, S&P Global said on Wednesday.
The parties hoping to form Germany’s next government have just agreed a tectonic spending shift with a plan to create a 500 billion euro infrastructure fund and to overhaul the country’s long-standing ‘debt brake’ that caps borrowing.
“Our biggest concern with Germany’s creditworthiness is the stagnating economy, so anything to boost the domestic economy is a credit positive,” top S&P analyst Frank Gill said during a webinar.
He added that Germany’s low debt levels meant it had “significant” room for additional spending, saying: “We think the triple-A rating is safe.”
Gill’s colleague Roberto Sifon-Arevalo also said Canada’s fiscal space was “quite ample” to sustain its triple-A rating despite its current dispute over tariffs with the United States.
(Reporting by Marc JonesEditing by Amanda Cooper and Gareth Jones)
Comments