Sunday, August 11, 2013

Fitch Affirms Luxembourg at 'AAA'; Outlook Stable

    My Orchids. Phalaneopsis "Triple A". Photo ET


Fitch Ratings has affirmed Luxembourg's AAA rating, and pointed out Luxembourg's relatively good performance in GDP growth.
Several statements indicate the key spots that will be considered in future assessments:
·         Luxembourg's greater volatility due to the reliance on financial services and its risks
·         The total balance sheet of the financial sector  is 70X GDP, though this is not indicative of potential risks.
·         Luxembourg's debt and Eurozone liabilities are increasing

·         Future social security liabilities and costs, though known but ignored and invisible now, will become a shock in about 2030, if unattended. 



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