Watch CBSN Live

Egan-Jones rating agency downgrades Germany

(AP) BERLIN - Egan-Jones credit ratings agency says it has downgraded Germany by one notch from AA- to A+ and has issued a negative watch for the country's sovereign debt amid Europe's lingering debt crisis.

The U.S. company cited Germany's implicit debt stemming from different mechanisms stabilizing the 17-nation eurozone as the main reason for its decision.

The world's top three rating agencies - Moody's, Standard & Poor's and Fitch - give Germany their best rating and have not questioned the AAA for Europe's biggest economy.

Most investors consider Germany's sovereign debt to be a safe haven, significantly driving down the yields and making it cheap for Germany to borrow new funds. Recently a short-term debt auction even brought negative yields, meaning investors paid Germany to take their money.

How fragile is the euro?
Germany welcomes Greek conservatives' win
Moody's slashes debt ratings of 28 Spanish banks