On Friday 14 October 2016 the Fitch ratings agency reaffirmed the "AAA" rating of the Grand Duchy of Luxembourg with a "stable" outlook.

This new confirmation of the AAA rating follows that of Standard & Poor's (S & P) on 17 September.

Luxembourg continues to be among the few countries to benefit from the best credit rating from the three major agencies S & P, Fitch and Moody's.

In its analysis, Fitch notes that Luxembourg's public debt is among the lowest in the world, including among the countries with a AAA rating. The agency also says that with a surplus of 1% of GDP in public administration on an average of 5 years, Luxembourg favourably differs from other countries, while the median budget balance of AAA countries is -0.5% of GDP.

The agency also believes that tax reform announced for 2017, combined with the next indexation,with  lead to an increase in the disposable income of between 5-6%.

On this basis, Fitch considers that Luxembourg will continue to see good, growth above the European Union and the Eurozone average. Furthermore, the agency stresses good capitalisation and robustness of the Luxembourg banking sector.

Among the risks, Fitch cites uncertainties regarding Brexit and the long-term financing of the pension system.

Pierre Gramegna, Minister of Finance, commented "This new confirmation of our AAA emphasises the merits of the government's budgetary policy. Public debt is not only under control, but remains well below that of most other countries with AAA (rating). The analysis confirms that the tax reform will significantly increase the purchasing power of households and thus stimulate growth, without jeopardising fiscal balance. The AAA rating emphasises the country's attractiveness to investors and thus contributes to the creation of new jobs."