01/17/2012 07:03 pm ET Updated Mar 18, 2012

S&P: Germany Won't Be Downgraded Even In Recession

BERLIN, Jan 18 (Reuters) - Ratings agency Standard & Poor's sees no risk of a downgrade to Germany's AAA-rating for its sovereign debt this year even if a recession affects the country, its European credit analyst was quoted as saying on Wednesday.

"We believe that Germany is in strong situation and should be able to see out a possible recession this year without being downgraded," German daily Bild quoted S&P analyst Moritz Kraemer saying in its Wednesday edition.

Germany is the only major euro member to retain a top notch credit rating after S&P's downgrade of France and Austria, and a matching downgrade of the euro zone bailout fund -- or European Financial Stability Facility -- which they helped guarantee.

The German economy has managed to avoid the worst impact of the euro zone debt crisis, with steady exports and consumer demand helping it grow 3 percent last year, albeit with a retraction of about 0.25 percent in the final quarter.