DBRS Morningstar confirms Luxembourg's AAA rating

DBRS Morningstar confirms Luxembourg's AAA rating

The rating agency DBRS Morningstar confirmed Luxembourg's rating on Friday evening after the country's markets closed. The "AAA" rating reflects the high stability of the country's finances and the attractiveness of the economy for investors, including foreign investors.

The agency noted the strength of public finances, despite the increased pressure on the budget caused by active support to resolve the energy crisis. According to DBRS Morningstar, GDP is expected to decline in 2023 and recover in 2024. At the same time, private consumption, although declining, is still higher than in other EU countries.

This is not the first time that DBRS Morningstar has given Luxembourg a AAA rating. Exactly one year ago, the country received the same recognition. Other rating agencies have also recognized the Grand Duchy's achievements.

The rating is also supported by key indicators such as a strong legal and regulatory framework and a stable political and external position. All of these underpin a favorable foundation for growth and stronger finances.