Egan-Jones downgrades Germany to A from A+; Outlook negative

FXstreet.com (San Francisco) - Egan-ones, the independent rating agency, has decided to cut German sovereign debt rating from A+ to A according to a recent press release.

The firm affirms that as "Angela Merkel continues to resists calls for EU bonds (shared liabs.) and money printing and is pushing for fiscal controls and the seniority of bailout funding, Germany is likely to be outvoted by other ECB members and therefore will have greater prospective exposure."

The outlook is negative for the country. The agency used the "the IMF's data for Germany's debt which is greater than Eurostat's data." Egan-Jones will be watching closely the progress on the EU banking union.