CORRECTED: In update, Moody's maintains Germany's 'Aaa' rating

The international ratings agency Moody's on Thursday issued a credit update of Germany, maintaining its top "Aaa" rating on German sovereign debt, albeit with a negative outlook, a day after rumours over a possible German downgrade had rocked European stock markets.

Germany's rating "is underpinned by the country's advanced, diversified and highly competitive economy and its track record of stability-oriented macroeconomic policies. Moreover, Germany enjoys high levels of investor confidence, which is reflected in very low debt funding costs," a Moody's statement said.

The agency emphasised that its annual credit report on Germany "is an annual update to the markets and does not constitute a rating action."