Published by Global Banking & Finance Review®
Posted on March 5, 2025
1 min readLast updated: January 25, 2026
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Germany's increased defence spending is viewed positively for its AAA credit rating by S&P Global, with plans for a 500 billion euro infrastructure fund.
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)
S&P Global stated that Germany's plan for a significant increase in defence and infrastructure spending will be a 'positive' for its triple-A sovereign credit rating.
The biggest concern is the stagnating economy, and any measures to boost the domestic economy are considered credit positive.
Germany's low debt levels provide it with 'significant' room for additional spending, which supports the safety of its triple-A rating.
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