The CCC risk rating is impacted by the Sovereign Probability of Default (ability and willingness to honour financial obligations), political risks, and other mitigating or worsening factors.
Business environment in Germany
In 2016, Germany was the second largest merchandise export market in the EU and seventh largest globally with total Canadian exports reaching approximately C 4.1 billion. In the medium term, Canadian exports to Germany will likely get a boost with the Comprehensive Economic Trade Agreement (CETA) coming into effect. The country’s market size (population 82.7 million in 2016), economic and political stability and very highly accommodating business environment make it a very attractive country for exporters. This last point is best exemplified by the fact that Germany ranked fifth out of 138 countries with particular emphasis placed on its strong infrastructure and ability to foster business innovation (World Economic Forum Global Competitiveness Report). From a sector perspective, EDC has historically seen most activity in the Automotive and Heavy Truck (automobiles and heavy vehicles), Aerospace, Construction and Infrastructure, and Mining & Metals industries. In addition to these industries, EDC sees strong opportunities for Canadian business in the ICT, Machinery, Renewable Energy and Environment Technologies sectors. The German economy is projected to perform well over the short-medium term, buoyed by the strengthening economic environment across the EU.
EDC serves Canadian companies in Germany through our local representation in Düsseldorf.