The world's fourth-largest rating agency, DBRS Morningstar, has confirmed the Grand Duchy's triple-A rating with a ‘stable’ outlook.

Morningstar named the solidity of Luxembourg's public finances as well as the low debt levels as the main reasons for the rating, as well as the efficiency of its institutions, economic prosperity, and strong external relations.

The agency also added that economic growth has strengthened in recent months, noting sustained growth in private consumption thanks to government measures to support households. It also expects a more favourable budgetary result than the government's own projections for 2024.

The Grand Duchy also seemingly has sufficient fiscal manoeuvring room to cope with moderate budget deficits over the next few years, and will continue to be an attractive financial centre thanks to its highly skilled workforce, solid legal and regulatory framework, and political stability.