On Saturday, financial rating agency DBRS confirmed the Grand Duchy's triple A rating.
Among other reasons for the positive evaluation, DBRS cited Luxembourg's healthy public finances, its well-functioning institutions and its stable political climate.
The country's budget policies are predictable and promote social cohesion, DRBS added.
The agency also highlighted that Luxembourg's public debt remains among the lowest in Europe - and voiced optimism that it would continue to dwindle to 18,4% by 2022.
Brexit could also be beneficial to Luxembourg as major financial players are likely to relocate to the Grand Duchy, DBRS explained.
While the agency noted the steady increase in property prices since 2010, it also estimated that average household debt levels remain at a reasonable level.
Potential risks to financial stability are therefore relatively contained. Luxembourg should be able to endure potential economic shocks, DBRS said.
Minister for Finances Pierrre Gramegna showed himself delighted at the positive result - especially because the draft legislation for the 2019 budget was only filed days ago.
According to the minister, DBRS's analysis proved "the excellent fundamentals of the country's economy and the attractiveness of our financial sector."
2019's state budget built on social equality, competitiveness, and sustainability
2019 state budget served with optimism - and a pinch of caution
