Egan-Jones Downgrades Germany From A+ To A, Outlook Negative

Tyler Durden's picture

The more you try to shut them up, the more they have to say...

Just out from Egan-Jones

4/17/2013: Federal Republic Of Germany: EJR lowered A+ to A (Neg.) (S&P: AAA) (3413Z GR)


Although Germany's credit metrics are respectable, the country has exposure to its banks and the weaker EU members. Deutche Bank has adjusted shareholders' equity to asset near 2% and might need EUR 100B of support. Via the ECB's Target 2, Germany is owed EUR700B of which perhaps 50% is collectible and then there is the banks' southern EMU exposures. Germany's debt to GDP was 80.6% as of 2011. However, increasing Germany's debt by EUR500B raises the adjusted debt to GDP to 100%. The deficit to GDP of .8% is reasonably strong. Unemployment is 6.9% but will probably rise as global economies continue to show weakness. The positive (EUR16.8B) balance of trade (per GFSO) and the positive EUR5.59B current account (per the OECD) help. Inflation has been moderate at 1.4% (per GFSO).


Chancellor Merkel continues to resist 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. Watch for the EFSF and the ESM morphing into banks (thereby depressing eventual recoveries) and a rise in the number of euros. Watch progress on the EU banking union. We used the IMF's data for Germany's debt which is greater than Eurostat's data. Downgrading.

Full report here

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DrDinkus's picture

well that was good for a whole half a 32nd tick in bonds!!

idea_hamster's picture

Synopsis: "I'm not satisfied with being persona non grata in just one country!"

Ahmeexnal's picture

Time for a false flag reichstag fire.

toys for tits's picture

Germany's credit is still good enough to buy a Toyota.

Scro's picture

All you need is a used shotgun.

Pladizow's picture

EJ - only rating agency with ethical balls!

Ahmeexnal's picture

Swine-hella Merde-kel is following on the footsteps of Hitler:

Tax evaders and gold hoarders to be sent to "re-education" camps.

HoofHearted's picture

I thoght Sean Egan was on double secret probation and not allowed to issue ratings. 

"Everything is under control!"

Anglo Hondo's picture

Uh uh ...  here comes Godwin's Law again.

Never fails.


Passage's picture

Watch out! AUDUSD carry trades unwinding, 1.03 now

1:1 soon

hedgeless_horseman's picture



Watch progress on the EU banking union.

Say it with me, Ghordius... 

Eurobonds, bitchezzz!!!

Ghordius's picture

Thanks, No, thanks

Wall Street and The City can go fly a kite

Funny how it's them pushing most for a integration...

And banking union ain't something to be... rushed. And completed soon...

hedgeless_horseman's picture



...but completed it must be.

Ness.'s picture


Armageddon Days Are Here (Again) 

If the real Jesus Christ were to stand up today
He'd be gunned down cold by the C.I.A.
Oh, the lights that now burn brightest behind stained glass
Will cast the darkest shadows upon the human heart
But God didn't build himself that throne
God doesn't live in Israel or Rome
God doesn’t belong to the yankee dollar
God doesn't plant the bombs for Hezbollah
God doesn't even go to church
And God won't send us down to Allah to burn
No, God will remind us what we already know
That the human race is about to reap what it's sown.

Matt Johnson- 1989

Only the faces have changed.


disabledvet's picture

"Luuuuuuke. I am your Father-lander...Luuuuuuuuke.....Luuuuuuke....

Bearwagon's picture

Absolutely NOT necessary.

DeadFred's picture

Don't they usually wait until Friday afternoon after the close to downgade countries? Oh yeah this is Egan Jones.

Pegasus Muse's picture

Why does Egan Jones remind me of this ....  

"That's when I fell for ..."

"The SEC was always putting him down, down ..."


Winston Churchill's picture

No sauerkraut, and schnitzel for Egan Jones this Christmas.

disabledvet's picture

ah 2006 and the "let's put some lipstick on this pig and get her out the door" salad days. sorry about that (insert small town in somewhere, various pension, that guy was buying?!, etc...) here.

Silver Bug's picture

Let's stop beating around the bush and simply mark them all as Junk Status.

camaro68ss's picture

Bullish bitchez, buy buy buy, house of pleasure.....

JohnnyBriefcase's picture

Downgrade is synonymous with upgrade, right?

johngaltfla's picture

Uh-oh. France is about to be over run with Panzers in retaliation. Sucks to be them.

fonzannoon's picture

Too bad the muzzled you on the U.S Egan

rubearish10's picture

Yeah but will this or any other news actually bring equities lower for a second day in a row, tomorrow? Would have to see it to believe it. Cover shorts now.

mberry8870's picture

I can only presume the Egan Jones will now be tagged as some sort of terrorist organization.

BudFox2012's picture

They already were harrassed by the SEC, maybe stronger measures will be needed this time...

ChanceIs's picture

It all makes sense now.  Eagan caused the gold crash when it took a page out of the Fed's book and leaked its downgrade intentions to every hedge fund under the sun last Thursday.  Reason for the downgrade: Germany can't get its gold back from the Fed and is therefore overstating its value on the asset side of the ledger.  Ha. Ha.  I have written funnier.

On a more interesting note, Chris Martenson and Mike Maloney did an impromptu interview to discuss the crash.  Chris lays it at the feet of a scramble to prevent the revelation that Germany's gold can't be returned or otherwise as a precaution that a few more countries will repatriate and that really will expose the notion that all of the gold has been leased out 20 times over.

Chief_Illiniwek's picture

I thought Egan-Jones had been declared an "assault weapon" in an executive order somewhere...


Or maybe it was the Feinstein "list"...

BudFox2012's picture

No one will care because it is Egan Jones, and they (at least somewhat) tell the truth.  That isn't really popular these days...

mberry8870's picture



Sorry got a little carried away.

thismarketisrigged's picture

bernanke has a lot of printing to do the next 2 days if he wants a positive week.


we will prob be down after today a total of around 315 on the dow for the week, and 45 on the s&p for the week, and nasdaq around 115 or so for week.


we shall see if bernanke and his criminals start printing the next 2 days. 


i hope this is the beginning of a major crash

fonzannoon's picture

these pm miners will all be at zero by Friday.

FieldingMellish's picture

Free gold mines! Excellent! I'll take 2 please.

Chief_Illiniwek's picture

What are the margin requirements for something trading at zero?

Sandmann's picture

Deutsche Bank and Allianz have risk profiles to astound, but Paul Achleitner knows both very well and has just been told by BAFin to remove his Chief Legal Counsel and replace him with a German speaker. There are changes on the Aufsichtsrat because Jain has quite a few problems ahead

PontifexMaximus's picture

As Adenauer used to say: was kümmert mich mein Geschwätz von gestern. So move along!

NoDebt's picture

They will not be welcome in Davos next year.

ziggy59's picture

Links to egan jones and boston in 3..2...

McMolotov's picture

Egan's an Irish surname. Boston has the Irish mob. Sean Egan is thus linked to Boston.

You can thank me later, feds.

No Euros please we're British's picture

Boston Irish? Hey wait, didn't they used to bankroll some organisation who planted pipe bombs in public places? Just asking.

fonzannoon's picture

another brilliant finish coming up....and we have cheap energy now!!!!!!


The Dancer's picture

Guys, Today my message is one of hope...I'm sensing a possible turn of the political worm..but for many that may not be so good...but as for me, I could sure use some sanity for a change...even if it means a tougher life to live in some ways...simplicity might be waiting in the wings...and I sure hope I'm right especially this time! btw, check the record, I was one of the few to catch this stock fall with near perfect timing....bought SDS 3 ticks from the low yesterday...and took profits on that trade today...even a blind hog finds an acorn

Bearwagon's picture

"Das wurde aber auch verdammt nochmal Zeit, ihr Penner!"

Translates roughly to: That was about time, you dorks!

DebtSlaveZombie's picture

SLW Apr 22 calls....load up baby... big bounce tomorrow morning.  Sell the ZSL calls from yesterday and cover your SLW short and go long Apr 22's until noon tomorrow....