For Fitch and DBRS, the healthy and sustainable public finances of Luxembourg remain its main assets at the international level. Fitch notes in particular the government's prudent budgetary strategy, which is based on two pillars: compliance with the medium-term objective (MTO) of + 0.5% of GDP and keeping public debt below 30% of GDP. Among the rare countries benefiting from an "AAA", Luxembourg is the one with the lowest public debt, with a ratio of 23% of GDP in 2019.
DBRS, for its part, recalls that the budgetary situation of the central administration was characterised by a surplus during the years 2018 and 2019, and highlights the stable political environment and the robust institutional framework of Luxembourg.
Regarding the risks that may affect the development of the economy, the agencies indicate the possible consequences of Brexit, the economic risks posed by the Covid-19 virus, the development of international corporate taxation and a possible turnaround protectionist in the world economy. Despite a much less favourable external environment and growing uncertainties, the agencies consider that the risks for Luxembourg are under control, and that the country has the means to deal with possible shocks.