The agency Standard & Poor’s confirmed the AAA rating of Luxembourg with a stable outlook. The Grand Duchy continues to hold the top rating by the three leading agencies S&P, Moody’s and Fitch.
In its review of Luxembourg, S&P anticipates growth above the average of the euro area. It highlights the good supervision of the Luxembourg economy as well as the strength and continued diversified character of its financial sector. The analysis also underlines the positive effects of “Zukunftspak” in reducing the state deficit.
Among potential risks, S&P mentions a possible reduction of revenues, in a difficult international context, particularly with regard to regulatory developments worldwide and the possible impact on public finances. The report also discusses the long-term financing of the pension system.
Pierre Gramegna, Minister of Finance says: “Three weeks away from the presentation of the draft budget for 2016, this new confirmation of our AAA emphasizes the merits of the government’s choice in terms of public finances. The risks highlighted by the analysis underscore the importance of pursuing a prudent fiscal policy. The AAA rating is a cornerstone of the country’s attractiveness and thus a guarantee of growth and job creation. ”