Standard & Poor's affirmed the 'AAA' credit rating of Germany as the largest euro area economy demonstrated ability to absorb huge economic and financial shocks.

In a report published on Friday, the agency said the outlook on the long-term rating remains stable, reflecting the assessment that Germany's public finances and strong external balance sheet will continue to withstand potential financial and economic shocks.

S&P expects the German economy to maintain steady growth over the medium term, averaging close to 1 percent in real GDP per capita terms in 2013-2016.

Further, it said that Germany's net general government burden will fall gradually from its current 78 percent of GDP to closer to 73 percent in 2016.

However, it warned that a deepening and prolonged Eurozone crisis could hit Germany's economy.

RTTNews