Moody’s: German regional governments’ pension reserves keep costs at sustainable level
German regional governments’ pension credit risk is moderate due to their ability and demonstrated willingness to ensure sustainability, Moody’s Public Sector Europe (MPSE) said in a report published today. Furthermore, the decision to build reserves to mitigate the expected rise in pension costs will keep annual payments at a sustainable level.
The report, “German Regional Governments — Small Pots, Big Impact – Pension Reserve Funds To Alleviate Budgetary Pressure”, is available on www.moodys.com. Moody’s subscribers can access the report using the link at the end of this press release. The research is an update to the markets and does not constitute a rating action.
All German Laender have started accruing earmarked reserve funds to mitigate expected rising pension-related costs. At the end of 2015, their total earmarked reserves stood at €35 billion.
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