12.07.201406:45:00UTC+00S&P Affirms Germany's Rating; Raises Ukraine's Outlook

Standard & Poor's Ratings Services affirmed the sovereign ratings on Germany and raised the outlook on Ukraine to 'stable'.

Germany's coveted 'AAA' rating was affirmed with 'stable' outlook. S&P said the Germany economy has demonstrated its ability to absorb large economic and financial shocks.

The 'stable' outlook reflects the expectation that Germany's public finances will continue to withstand potential financial and economic shocks and that consensus in favor of prudent economic policies will remain.

The rating agency also affirmed the 'CCC' long-term foreign currency sovereign credit ratings on Ukraine and upgraded the outlook to 'stable' from 'negative'.

The 'stable' outlook reflects the assessment that the $17 billion program from the International Monetary Fund helped stabilize the deteriorating macroeconomic situation in Ukraine.

Moreover, it noted that the new government under Prime Minister Yatsenyuk has been stable and relatively cohesive.

Nonetheless, it still consider that there is a significant likelihood that the IMF program could be derailed by geopolitical risks and a severe recession that puts pressure on the program's macroeconomic expectations.

S&P affirmed Malta's 'BBB+/A-2' on economic performance and fiscal consolidation. The outlook on rating was maintained at 'stable'.

However, S&P viewed the Malta's government's relatively high debt burden as a constraint on policy flexibility compared to other economies with similar per capita GDP levels.