On 25 September 2015, financial rating agency Standard & Poor's (S&P) confirmed that the Grand Duchy of Luxembourg has retained its 'AAA' rating, with a 'stable' outlook.
The rating indicates that Luxembourg has had the highest credit rating affirmed by all three major agencies, these being Moody's in June, Fitch in July and now S&P in September 2015.
The analysis reported by S&P included good governance of the Luxembourg economy and the continued strength and diversification of the financial sector. It also confirmed the instrumental role played by the 'Zukunftspak' in reducing the state deficit.
Regarding risks, S&P indicated a potential revenue reduction due to a difficult international context, particularly with regard to worldwide regulatory developments and the posssible subsequent impact on public finances. The analysis also discussed the long-term financing of the pension system.
"Three weeks before the presentation of the 2016 draft budget, this new confirmation of our AAA emphasises the merits of the Government's choices with regards to public finances," commented Minister of Finance, Pierre Gramegna. "The risks highlighted by the anaylsis underline the importance of continuing a prudent fiscal policy. The AAA rating is a cornerstone of the country's attractiveness and thus a guarantee of growth and job creation".
Photo by eu2015.lu (Minister of Finance, Pierre Gramegna)
