Germany under negative watch by Coface

Following in the footsteps of France – under negative watch since October 2008, Germany was the last major Western European country to have the best Coface country rating.

 Weakened by the global trading and
economic turndown, Germany, which is dependent on its exports, has now been placed under
negative watch by Coface due to a start of increasing non payment recorded on German companies.

The German economy entered into
recession in spring 2008 due to weakening exports, which are the main
driver for the German economy (41% GDP). Due to this hardened
context, German industry should be stopping its investments. On the
other hand, investment in the public works industry and household
consumption should have positive repercussions, albeit slight.

Germany has been given A1 negative
watch rating by Coface. Coface anticipates growth of 1.5% in 2008 and
-1% in 2009 for Germany. Coface has observed a rise in companies‘
payment incidents of 27% in Germany in the first eleven months of
2008.