Bloomberg News

Egan-Jones Says Germany Risks Credit Rating, Welt Reports

July 27, 2012

Sean Egan, president of Egan-Jones Ratings Co., said Germany is putting its credit grade at risk if it commits to more aid for debt-strapped countries, Welt am Sonntag reported, citing an interview.

“We will look carefully at what financial commitments Germany makes in the coming weeks,” Egan told the German newspaper, according to an e-mailed pre-release today. “And if guarantees or credit lines are increased, we will act immediately,” he was quoted as saying.

It is “absolutely possible” for Germany to default, Egan said. “If Germany gives in now and doesn’t fight off the desires of other countries, it will go off the rails itself.”

Egan-Jones currently has an A- rating on Germany, according to the report.

To contact the reporter on this story: Jana Randow in Frankfurt at jrandow@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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