On Saturday 14 February 2026, Luxembourg’s Ministry of Finance announced that the credit rating agency Moody's had confirmed the Grand Duchy’s “AAA” rating with a stable outlook.
According to the ministry, the decision, received on Friday 13 February 2026, highlights the strength of the government’s political, economic and financial choices and reflects the international confidence enjoyed by Luxembourg.
The ministry also emphasised that the “Matenee wuessen” budgetary policy is delivering results and despite an uncertain international context the economy remains resilient and public finances remain sound.
The ministry said that in making its decision Moody’s emphasised the dynamism and flexibility of Luxembourg’s economy, as well as the strength of the assets held by the State. These advantages, combined with the quality of institutions and governance, offset the country’s strong dependence on the financial sector, the long-term impact of demographic ageing and its moderate exposure to geopolitical risks.
The agency expects an acceleration in real GDP growth, which is projected to reach 2.1% in 2027, following several years of weak growth, notably marked by a slowdown in the construction and property sectors due to rising interest rates. It anticipates a gradual increase in public debt, from around 27% of GDP in 2025 to 28.2% in 2027, and a general government deficit that would remain moderate, despite increased expenditure linked to the objective of raising defence spending to 2% of GNI from 2025 onwards.
Moody’s also highlighted the robustness of Luxembourg’s regulatory and budgetary frameworks, as well as the effectiveness of financial sector supervision. The stable outlook reflects the resilience of Luxembourg’s credit profile in the face of growth challenges in Europe, supported by high levels of immigration and specialisation in high value-added services.
