The Eurozone debt crisis is deepening further with a warning that the top credit rating of Germany could be at risk.

Moody’s has put the AAA status of the biggest European economy on a negative outlook given the rising uncertainty over Greece, Spain and Italy.

It is also being reported today that Madrid will be seeking a partial bailout from its European partners to address its immediate financing needs.

The Spanish cost of long-term borrowing on the debt markets has reached over 7.5% which is another record high.

Hans Michelbach is a senior member of the Christian Social Union (CSU) which is sister party to the conservative Christian Democrats (CDU) of Chancellor Angela Merkel.

He described the move as “a signal that even Germany’s resilience is not unlimited”.

“Germany has made a huge solidarity contribution to stabilise highly indebted Euro states. Taking on a further burden will be difficult and hard to explain to citizens” he said.

Polls show most voters back the tough approach of Merkel towards bailouts which has included imposing tough conditions in return for aid and resisting the mutualisation of debt.

With fears that an agreed up to €100 billion bailout to prop up Spanish banks may not be enough the Moody’s warning shows her room for manoeuvre at home is diminishing.

Rabobank Market Strategist Richard McGuire says it now appears inevitable that Spain will need a full rescue package.