Finance Minister: S&P Rating Is ‘Positive News’

May 2, 2016

Deputy Premier and Minister of Finance Bob Richards today welcomed a new sovereign ratings notification from the Standard & Poor’s rating agency. S&P affirmed Bermuda’s rating at A+ and maintained our stable outlook.

Minister Richards said: “The key drivers that were listed as the reasons for the affirmation are improving fiscal deficits and the return of real GDP growth.

“The Ministry of Finance has been working diligently to reduce our deficit and it is pleasing that S&P has recognized this and affirmed our ratings.

“It is satisfying that our sovereign rating was affirmed at A+, especially when ratings agencies have been extremely cautious as evidenced by the ongoing downgrades of several countries.”

“The stable outlook reflects S&P’s expectation that Bermuda’s economy will grow in the next two years, which in turn will assist with the country’s deficit reduction efforts. This is in line with the Ministry’s projections announced in the 2016/17 Budget,” the Ministry said.

“S&P continues to endorse the Government’s effective policymaking and political stability. It is also pleasing to note that S&P predict that growth should come from the construction and tourism sectors, which is exactly what the Government is anticipating,” the Finance Minister added.

He said, “This independent ratings update report is positive news and the Government will continue to press ahead with our two track strategy that strikes a balance between responsible growth and disciplined financial management.

“This report is further evidence that our policies are beginning to bear fruit. With the stimulus and discipline from the 2016/17 Budget that the Government put forward, we can look forward confidently to positive growth during 2016 and beyond from which all Bermudians can benefit.”

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Comments (9)

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  1. Now this is GREAT news: “Deputy Premier and Minister of Finance Bob Richards today welcomed a new sovereign ratings notification from the Standard & Poor’s rating agency. S&P affirmed Bermuda’s rating at A+ and maintained our stable outlook”.

  2. Joshua says:

    Awesome progress

  3. Triangle Drifter says:

    Bad news. The PLP will not want to see that. They are in the rinse cycle. Spin is up next.

  4. Average Bermudian says:

    fey ?

  5. Portia says:

    “Effective policymaking and political stability”? Seriously? Were these guys even paying attention to what’s been going on here since the start of this year? Bermuda has never BEEN more unstable, Never mind the fact that the report doesn’t even give the true unemployment rate (because Government doesn’t even know it themselves) or the fact that the recent budget is almost guaranteed to cause an exodus of more Bermudians next year and a bad hit for local businesses.

    S&P…a bunch of guys from overseas, who have likely never set foot on the Island (or even know where Bermuda is exactly) trying to tell us nonsense.

    • Double S says:

      So they were right when they issued a downgrade.

      But clueless when they give positive news regarding Bermuda’s economy.

      They are right. The closing of the PLP’s $400mn deficit and the renewed foreign direct investment into the island is positive.

      S&P doesn’t care about your emotions and neither do our creditors.

      They care about facts.

    • Build a Better Bermuda says:

      Sorry, but weren’t you chiming in about how when they were still downgrading us under the OBA, that it was a sign of bad government, etc… now they are clueless about who we are…

  6. Cow Polly says:

    It is good news for the island when an independent body such as the S&P gives a positive opinion based on how the island is viewed from an external perspective. All the petty politicians and armchair economists can voice their objections all they want (see Portia’s post above) but if financial institutions are supporting our Government’s recovery plan and see stability in our future then, in the words of Martha Stewart “It’s a good thing”!