On 10 July 2015, rating agency Fitch reaffirmed the AAA rating of the Grand Duchy of Luxembourg with "stable" outlook.
The 'AAA' rating is the highest possible assigned by credit rating agencies, and Luxembourg continues to benefit from the highest rating of the three major credit agencies S & P, Moody's and Fitch.
Fitch confirmed the favourable economic trends in Luxembourg, with growth above the average of the Euro area. At the public finances level, the analysis demonstrated the positive effects of the "Zukunftspak" tax measure which came into force in 1 January 2015, but reported potential risks at the long-term financing level of the pension system. Moreover, Fitch highlighted the weight of the financial sector in the Luxembourg economy, noting its strength and continued growth.
Fitch also stated that the process "BEPS" (erosion of the tax base and profit transfer) will not have significant implications on the presence of companies on Luxembourg soil. Similarly, a hypothetical "Grexit" should incur, if any, a limited effect on Luxembourg.
"This new confirmation of our AAA proves that the government's policy to diversify our economy and our financial center and to consolidate our public finances while maintaining a high level of investment, bears fruit," commented Pierre Gramegna, Minister of Finance. "We put our public finances back on track and we continue to modernise our country, which allows us to face the challenges of the future with confidence."
Photo by Geoff Thompson (Finance Minister Pierre Gramegna)
