Credit rating agency Moody’s on Friday reaffirmed Luxembourg’s Triple-A rating with a stable outlook.
This emerges from a governmental press release from late Friday evening.
Luxembourg therefore continues to be placed among the few countries to enjoy the highest rating of the three biggest credit rating services S&P, Fitch and Moody’s, as well as that of Canadian credit rating service DBRS.
In its analysis, Moody’s underlines that Luxembourg’s economy is growing stronger than the average of the euro zone and most of the other countries rated AAA.
Furthermore, the agency is expecting a GDP growth of around 4% for the coming two years.
Luxembourg’s financial sector will continue to be a driving force of this development, according to Moody’s, referring to the good governance and diversified character of the sector.
In this context, Moody’s underlines the positive contribution of Luxembourg’s Systemic Risk Committee to this stable situation.
The rating service also refers to the budgetary situation of the Grand Duchy, seeing it among the most solid of all Triple-A rated countries. Especially the improvement of the situation of public finances in recent years is named, together with the positive development of the balance of the public administration, which should pass from 0.2% of GDP in 2017 to 0.7% in 2020.
Public debt should be at 23% of GDP in 2017.
Luxembourg’s Finance Minister said: “This confirmation of our Triple-A rating is good news for Luxembourg, reinforcing its economic attractiveness and contributing to the creation of new jobs. Moody’s analysis goes to show that maintaining a ‘AAA’-rating with a stable outlook is not self-evident, but the result of the right political choices”.