Moody's certified Luxembourg's good environmental, social and governance (ESG) performance on Thursday, following the recent introduction of ESG aspects in its assessment methodology. The agency recalled in this context that the Grand Duchy continues to benefit from the highest credit rating.
The AAA-rating is based on the robust financial situation of thesState and a low level of debt, a forward-looking economic policy and a stable political environment.
In this revised opinion, the rating agency assigns a positive ESG-credit impact score to the Grand Duchy, reflecting a low exposure to environmental and social risks, high governance performance and a very high capacity to respond to shocks.
The agency notes that Luxembourg's exposure to environmental risks remains low. For Moody's, the country stands out for its particularly high safety performance and widespread access to quality healthcare. In terms of governance, Luxembourg is rated highest possible thanks to its high degree of transparency and its balanced fiscal policy. The agency also observes that despite its small size, Luxembourg has a well-performing public administration.
