Germany Downgraded

I can't believe I missed this! Egan Jones downgraded Germany from AA to AA-. What is significant n my mind are as follows:

1) Germany was downgraded
2) Egan Jones is the one who did it.

If there's one rating agency that has been on the ball before everyone else, it is Egan Jones.

From Forbes...

Time To Cut Germany's Credit Rating? Egan-Jones Downgrades To AA-

As to the broader implications, this may not effect the credit worthiness of the EFSF as the S&P has their own revised model, or it could prompt other ratings agencies to follow in Egan's footsteps so they don't have 2007-2008 egg on their face.

Internally in Germany, the populace is not going to like the fact that Germany was just downgraded because Germany is the top contributor to the bailout 

mechanisms which are already hugely unpopular with Germans.


In recent days there's been talk of an EU exit by a member state, yes Greece is the obvious on, but I was referring to Germany. It isn't the first time either. Politically things just got a lot harder for Merkel and the CDU. This may have some unexpected fallout yet to come.