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Luxembourg's (Aaa stable) credit profile reflects exceptionally high wealth levels, a dynamic and flexible economy, and the sovereign's very strong balance sheet. Together with strong institutions, this counterbalances credit challenges such as Luxembourg's economic reliance on the financial sector and exposure to global financial market volatility, as well as international pressure on the corporate tax system. Continued increases in house prices and household debt are a potential longer-term risk. We believe that the negative impact from the coronavirus outbreak on the economy and Luxembourg's government finances and debt metrics will be temporary.
Credit challenges»
- Exceptionally large financial sector heightens exposure to...
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