Outlook stable

S&P confirms Luxembourg AAA rating

Photo: AFP

(CS) Credit rating agency Standard & Poor's (S&P) on Friday confirmed Luxembourg's triple A credit rating with a stable outlook.

The Grand Duchy currently also enjoys a triple A ratings from Moody's and Fitch.

As of October 2014, Luxembourg was only of nine countries worldwide, and only two in the eurozone, that have a triple A rating by all three major credit rating agencies. The others include Australia, Canada, Denmark, Germany, Norway, Singapore, Sweden and Switzerland.

Finland was recently stripped of its triple “triple A” crown as S&P downgraded it to AA+.

For Luxembourg S&P highlighted the favourable economic climate with growth rates above the eurozone average. The analysis also pointed out the stability of the Luxembourg financial sector, due largely to a growing diversification in activities.

However, the agency also mentioned a number of risks, especially the long-term financing of the country's pensions system. It additionally commented on the large role the financial sector plays in the overall economy.

Finance Minister Pierre Gramegna welcomed the decision by S&P. “The AAA rating underlines the stability of our country and reinforces the trust in the Luxembourg economy. It contributes in the attractiveness of the country and thus to the creation of new jobs,” an official statement issued Saturday said.