Fitch confirme le „AAA“ du Luxembourg

The Luxembourg Ministry of Finance informs that the credit rating agency Fitch has reaffirmed the Grand Duchy of Luxembourg’s credit rating as „AAA“ with a stable outlook.
This highest possible rating reflects the country’s strong economic fundamentals and sound fiscal policy. Despite the economic slowdown, Fitch believes that the government’s support measures, such as the „Energiedësch“ and „Solidaritéitspäk,“ have maintained households‘ purchasing power, thus stimulating domestic demand, which is an important driver of growth.
However, tightening financial markets could potentially impact private investments. Nevertheless, the government’s focus on energy and digital transition, housing accessibility, and infrastructure will continue to drive public investment. Fitch also notes that inflationary pressures remain high, despite a downward trend in underlying inflation (excluding energy and unprocessed food) in recent months.
The financial sector, a cornerstone of the economy, remains strong. Fitch highlights the country’s high levels of capitalization, profitability, and liquidity in its banks, which should enable them to withstand the consequences of any interest rate-related shocks. The prudent budgetary policy of Luxembourg is another key factor in Fitch’s assessment, with the agency expecting the public debt level to remain below 30% of GDP.
Furthermore, Fitch emphasizes the importance of political stability, the rule of law, and the quality of robust regulations and institutions in Luxembourg. Minister of Finance Yuriko Backes expresses her satisfaction with Fitch’s reaffirmation of the highest „AAA“ rating, stating that it reflects the country’s strong economic fundamentals and responsible fiscal policy. She particularly highlights the government’s measures to maintain business competitiveness and households‘ purchasing power. The recent approval of the economic stimulus tax credit by the Council of State is seen as a significant development, allowing the measure to be voted on by the Chamber of Deputies before the summer begins.