On Friday, Moody’s certified Luxembourg's good environmental, social and governance (ESG) performance, following the recent introduction of "ESG" aspects in its assessment methodology. 

The AAA rating is based in particular on the robust financial situation of the state and a low level of debt, as well as its far-sighted economic policy and stable political environment. In this updated opinion, the rating agency assigns a “positive ESG” credit impact score to the grand duchy, reflecting low exposure to environmental and social risks, top-performing governance, as well as a very high capacity to respond to shocks.

Moody's stresses that thanks to its solid economic structure, Luxembourg was able to better withstand the economic consequences of the pandemic. The agency further notes that Luxembourg's exposure to environmental risks remains low. For Moody’s, the country stands out for its particularly high performance in terms of safety and widespread, quality access to health care.

In terms of governance, Luxembourg received the best possible score thanks to a high degree of transparency and a balanced budgetary policy. The ratings agency further notes that, despite its small size, Luxembourg has an efficient public administration.

“In the current context of crisis, I am delighted to see that our country still enjoys the highest rating and that it is well positioned in terms of sustainability,” finance minister Pierre Gramegnan stated.

This article was originally published in French on Paperjam.lu and has been translated and edited for Delano.