Luxembourg has recently seen its AAA sovereign credit rating confirmed by two of the world’s leading rating agencies. S&P Global Ratings confirmed the rating on 30 January 2026, followed by Moody’s on 13 February 2026, both with a stable outlook, reflecting continued confidence in the Grand Duchy’s economic and institutional fundamentals.

They highlighted Luxembourg’s robust institutional framework, policy predictability and political stability as key strengths, as well as the effectiveness of the country’s regulatory and budgetary systems. The economy’s flexibility, its ability to attract high-value services and sustain strong immigration inflows, together with a competitive financial sector, support continued growth, with both agencies projecting real GDP growth of around 2.1% in the coming years. The financial services industry remains a key pillar of Luxembourg’s economic performance, underpinned by strong supervision and competitiveness. 

While some challenges were identified, including rising public expenditure, demographic ageing and reliance on the financial sector, public debt is expected to rise gradually to around 28.2% of GDP by 2027, which remains modest by international standards. 

Nevertheless, both agencies expressed confidence that Luxembourg’s institutional capacity and prudent governance will enable it to navigate these challenges effectively.

To read more: Luxembourg secures AAA rating from S&P and Moody's - Trade & Invest