S&P confirms Luxembourg triple-A credit rating

Rating agency S&P has confirmed Luxembourg’s triple-A credit rating, the finance ministry said on Saturday.

“This assessment reflects the financial soundness of the country, despite a deterioration of the budget balance, due in particular to the pressure exerted on defence spending, social policy, energy subsidies and efforts aimed at reducing the cost of living,” the ministry said in its press release.

Luxembourg’s economy will benefit from the continued improvement of the world economy and a fall in interest rates, the ministry said, citing the credit agency. This will allow real GDP to settle at an average of 2.1% over the period 2026 to 2029. The country’s economic prospects are also supported by “robust domestic consumption”.

“S&P Global Ratings underlines the attractiveness of Luxembourg for investors, thanks to the efficiency of its institutions, its political stability, its competitive financial sector and the predictability of its policies,” the press release added.