After Fitch, Moody’s confirms the AAA rating of Luxembourg
On 3 March, Moody’s Investors Service, the credit rating agency, has reaffirmed Luxembourg’s AAA rating, with a stable outlook.
Luxembourg thus continues to be one of the very few countries to receive the highest credit rating from the three big rating agencies, S&P, Fitch and Moody’s, as well as from the DBRS credit rating agency.
Moody’s indicates that the key drivers of this AAA affirmation are the resilience of Luxembourg’s economy, which has been growing at a higher rate than other euro area countries and many AAA rated countries; Luxembourg’s sound and transparent institutions, reflected in its effective financial regulatory framework and strong governance indicators, which have, according to Moody’s, safeguarded Luxembourg’s credit fundamentals in the face of several shocks over the past decade; and Luxembourg’s high fiscal strength, supported by fiscal surpluses.
Finance Minister Pierre Gramegna reacted to the announcement by saying : “This affirmation of the AAA credit rating is good news for Luxembourg and further reinforces our country’s economic attractiveness. The rating contributes to the creation of new jobs. Moody’s rationale indicates that the maintenance of an AAA rating with a stable outlook is not self-evident, but the result of our policies. Our public finances remain resilient and allow us to look into the future with confidence.”
In February, Fitch had also confirmed that it maintained its highest score for Luxembourg, a Triple A rating that is only awarded to 11 countries in Fitch’s latest round of scores.