On Saturday 1 November 2025, Luxembourg's Ministry of Finance reported that both Morningstar DBRS and Fitch Ratings have confirmed Luxembourg’s “AAA” rating with a stable outlook.
According to the ministry, Morningstar DBRS and Fitch Ratings highlight the country’s fiscal strength despite defence spending and the costs associated with an aging population, which will weigh on Luxembourg’s public finances. Despite a projected deficit of 0.8% of GDP in 2025, the fiscal situation remains significantly more favourable than that of most euro area countries, thanks to low public debt (26.8% of GDP in 2025). Morningstar DBRS and Fitch Ratings also commend the country’s effective institutions, political stability and advanced and prosperous economy.
These ratings are the first since the presentation of the 2026 Budget, “Growing Together.” According to the ministry, this double AAA rating confirmation thus demonstrates the relevance of the government's fiscal policy.
According to the agencies, the economy remains exposed to external risks such as global financial volatility and geopolitical tensions. They therefore anticipate that economic growth will remain moderate in 2025, but should accelerate from 2026 onward, driven in particular by the financial sector.
