Luxembourg Keeps Top Credit Rating, Showing Economic Strength

The government of Luxembourg confirmed that leading credit agency Moody’s has reaffirmed the country’s coveted AAA credit rating with a stable outlook. This endorsement reflects strong confidence in Luxembourg’s economic policies and financial health, even as global markets remain uncertain. 

Moody’s highlighted Luxembourg’s resilient institutions, solid governance, and sound budget management as key reasons for the top rating. Officials noted that careful fiscal planning has kept public finances stable and helped maintain investor trust. Despite higher defence spending and moderate debt growth expected in the coming years, the country’s economic fundamentals remain firm. 

The rating agency also forecast modest growth ahead, suggesting real GDP could rise in the next few years as activity rebounds from recent slowdowns in construction and other sectors. This balanced outlook underscores confidence in Luxembourg’s ability to weather economic challenges. 

Local authorities welcomed the news, emphasizing that the stable rating supports Luxembourg’s attractiveness to foreign investors and reinforces its role as a reliable financial and business centre in Europe. The government sees this affirmation as validation of its long-term policy strategies. 

Analysts say retaining AAA status helps keep borrowing costs low and strengthens Luxembourg’s position in global markets, which could benefit sectors beyond finance in the years ahead.

Read more: gouvernement.lu/fr/actualites/toutes_actualites/communiques/2026/02-fevrier/14-luxembourg-moodys.html

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