Moody’s lists three main reasons for awarding Luxembourg its AAA rating:
- The country’s strong economic resilience, robust growth potential and high degree of economic flexibility
- Its strong public finances and low debt burden, which result in a great capacity to absorb exogenous shocks. It can be noted that Luxembourg is the EU country whose debt has increased the least during the pandemic
- Luxembourg’s robust and transparent institutional framework, which is confirmed by its very solid governance indicators, prudent and predictable political decision making and effective financial regulation and supervision
“Stable outlook” rating
Moody’s also awards Luxembourg its “stable outlook” rating, which expresses the agency’s opinion that Luxembourg’s credit profile will emerge unscathed from the coronavirus crisis. It also expects the country to continue to be able to successfully meet the challenges arising from evolving global and European tax regulations.
The maintenance of the AAA rating is a further confirmation of the merits of our policy.
“At a time when the economic recovery is confirmed and the normalisation of daily life has begun, the maintenance of the AAA rating is a further confirmation of the merits of our policy,” comments Minister of Finance Pierre Gramegna. “The rating emphasises the solidity of our public finances and the effectiveness of our budgetary policy. It has made it possible for us to control the crisis well, and opens up excellent prospects for us.”