Economy & Politics

Moody’s reaffirms its triple A rating in Luxembourg

Despite the health crisis, the Grand Duchy retains the best rating in terms of solvency. The American rating agency considers that the increase in debt due to the pandemic is only temporary.

Despite the health crisis, the Grand Duchy retains the best rating in terms of solvency. The American rating agency considers that the increase in debt due to the pandemic is only temporary.

(JFC) – For the American rating agency Moody’s, Luxembourg deserves the maximum score – AAA as regards its solvency. Likewise, the outlook for the Grand Duchy also remains stable, said Moody’s in an update published on Tuesday. The US agency is basing its assessment on the hope that Luxembourg’s credit profile “will withstand the risks associated with Brexit, ongoing changes in global and European tax regulations, as well as global trade tensions.”

Moody’s however identifies a potential longer-term risk for the country, namely “a sustained rise in property prices and household debt.” But for the rating agency, the increase in debt caused by the covid-19 pandemic is “only temporary” and “does not currently constitute a risk for the solvency of Luxembourg.”


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