On Saturday 25 May 2024, Luxembourg’s Ministry of Finance announced that the rating agencies Fitch Ratings and Scope Ratings confirmed the AAA credit rating of the Grand Duchy with a “stable” outlook.
The two rating agencies once again certified the country's stable financial situation, thanks to solid economic fundamentals and Luxembourg's prudent budgetary management, the ministry noted. Fitch Ratings and Scope Ratings, however, highlighted the fact that ageing-related tax pressures will represent a challenge in the future.
Fitch's rating reflects an economy with exceptionally high per capita income and governance indicators above the median for 'AAA' rated sovereigns, as well as a low debt ratio. Scope highlights in its rating the rich and high value-added economy, the solid financial situation as well as the robust external position of the country, factors which have contributed to Luxembourg's economic resilience and its ability to cope with shocks.
Both rating agencies noted they now expect a similar economic recovery in the medium term.
