S&P Maintains Germany's 'AAA' Rating

(RTTNews) - Standard & Poor's confirmed Germany's coveted 'AAA' rating on Friday as the economy remains highly diversified and competitive with ability to absorb large economic and financial shocks.

The 'stable' outlook reflects the assessment that public finances and strong external balance sheet will continue to withstand potential financial and economic shocks.

The rating agency expects the largest euro area nation to grow above 1.5 percent in 2014-2016. The nation has avoided the need for significant private-sector deleveraging and fiscal consolidation.

However, it expects consumption to expand only modestly despite the introduction of the minimum wage and recent increases in consumer confidence.

S&P said general government budget deficit to average 0.17 percent of GDP in 2014-2016. Further, it expects net general government burden to gradually decline to closer to 71 percent of GDP in 2016.