Liechtenstein lands AAA rating again as PM hails “exceptional stability”

A fresh AAA rating from S&P Global reinforces Liechtenstein’s standing as one of the world’s most stable economies, strengthening a year that has also seen the principality ranked as the top global location for charitable foundations and praised for the strength of its banking sector

Liechtenstein has kept its place among the world’s most trusted economies after S&P Global Ratings renewed its AAA score.

The move leaves the principality — home to just 40,000 people — in an elite group of just eleven countries globally with the top grade.

S&P praised the country’s strong public finances, large financial buffers and close ties with both Switzerland and the European Economic Area.

The agency also highlighted Liechtenstein’s high political efficiency and tight regulation, noting that both factors help shield the country from global shocks.

It expects the economy to dip slightly this year but bounce back next year, with average growth of 1.7% from 2026 to 2028.

Prime Minister Brigitte Haas said the result shows how well the country is holding up as global uncertainty continues, and vowed the government would carry on protecting those conditions.

She said: “Such a rating cannot be seen as a given. It is a result of the successful work of the people and businesses in our country.”

The AAA renewal comes just weeks after Liechtenstein was named in the Global Philanthropy Environment Index 2025 as one the world’s top locations for charitable foundations, and follows a separate S&P assessment which reaffirmed the strength of the country’s banking sector.

The index, compiled by Indiana University, assessed 95 economies and found that the principality offers the most favourable conditions for philanthropy anywhere in the world.

It outscored Switzerland, Germany and the United States, achieving a near-perfect rating of 4.92 out of 5.

Experts behind the index pointed to Liechtenstein’s liberal foundation law, in place since 1926, and its long record of legal stability, political predictability and cross-border recognition through the EEA.

The principality’s foundations can operate privately, charitably, or as a mixture of both — a flexibility many larger jurisdictions have struggled to match.

They also noted that philanthropy is deeply rooted in local culture, widely supported by society and backed by government.

This social acceptance, they said, helps create a trustworthy environment in which donors can plan across generations.

In a separate verdict published on 17 September, S&P reconfirmed Liechtenstein’s banks in BICRA Group 2, one of the safest categories worldwide.

The agency highlighted conservative business models, robust capital levels and strong liquidity buffers, along with very low credit risk and exceptionally low mortgage loan-to-value ratios that help prevent property bubbles.

It also said Liechtenstein’s recent entry into the IMF in March 2024 will strengthen the country’s economic toolkit.

By joining as the Fund’s 191st member, Liechtenstein now has access to IMF technical support to upgrade its macroeconomic data, improve transparency and sharpen its statistical reporting.

S&P said this will give policymakers better information and add another layer of security to the financial system, with the IMF also able to act as a potential liquidity backstop in times of stress.

Dr. Johanna Niegel, a specialist in Liechtenstein’s foundation law and international family governance, and a lecturer at the University of Liechtenstein, told The European that the principality is an ideal location for donors seeking long-term stability and clear purpose in the way their assets are managed.

It offers wide structuring freedom, strong legal continuity, and a framework designed to secure assets across generations, she said.

“Once assets are endowed, the foundation becomes an independent special-purpose fund, and donors have considerable disposition flexibility,” Dr. Niegel added. “Foundations here think in terms of generations, which is exactly what many families and philanthropists need.”

Further Information

Produced with support from Liechtenstein Finance. To find out more about the principality’s financial sector and its regulatory, economic and philanthropic frameworks, visit finance.li/en

READ MORE: ‘Liechtenstein financial centre: A safe haven in uncertain times‘. The Liechtenstein financial centre is guided by the principle of ‘thinking in generations’ and aims to protect assets not just for a single generation, but for those to come. Liechtenstein’s stable political, economic and social environment, combine to make it an ideal location for long-term wealth preservation.

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_{Main image: Central Vaduz, home to Liechtenstein’s political and administrative institutions. The principality has maintained its AAA rating and was recently ranked the world’s leading jurisdiction for philanthropic foundations. Credit: Supplied}