Rating agency Fitch Ratings on Friday affirmed Germany's sovereign debt rating at 'AAA'. The outlook is 'stable'.

"The 'AAA' ratings primarily reflect Germany's strong institutions and diversified, high value-added economy. A large structural current account surplus supports the country's net external creditor position," the agency said.

Fitch added that Germany was able to manage the migrant crisis without any downgrades in rating.

The agency expects the German economy to expand 1.7% in 2016 and 1.8% in 2017, driven by domestic demand.