As of 8 January 2016, rating agency Fitch has confirmed the 'AAA' rating of the Grand Duchy of Luxembourg with 'stable' outlook. Thus, Luxembourg continues to benefit from the highest rating of the three major credit agencies S&P, Moody's and Fitch.
Fitch emphasises that this rating reflects the good management of public finances of the country and its relatively low level of debt compared to GDP (23.4%). In particular, the analysis underlines the favourable economic trends in the country, with an above average growth in the euro area.
As potential risks, Fitch cites in particular the long-term financing of the pension system and the relatively high weight of the financial sector in the Luxembourg economy. It should also be noted that the analysis of Fitch is based on the assumption that the effect of the implementation of BEPS remains neutral with respect to the operations of companies established in Luxembourg.
Pierre Gramegna, the Minister of Finance, comments: 'This new confirmation of 'AAA' with a stable outlook underscores the validity of our fiscal policy and the effectiveness of measures taken to consolidate public finances. This is good news for the attractiveness of the Luxembourg economy and therefore the labour market.'
(Source: press release of the Ministry of Finance)