Standard & Poor’s Affirms Bermuda’s Ratings

August 14, 2020

Minister of Finance Curtis Dickinson announced that ratings agency Standard & Poor’s [S&P] has affirmed Bermuda’s A+ long-term sovereign credit and senior unsecured debt ratings as well as its A-1 short-term rating and its AA+ transfer and convertibility assessment as “Stable.”

Minister Dickinson stated, “In light of our intention to issue Government bonds, S&P performed a review on Bermuda’s sovereign creditworthiness. While there is an expectation that the overall debt level will have a modest increase, S&P considered our healthy current account surpluses and large liquid assets were sufficient to support us through an economic recovery next year.

“I am pleased to report S&P has affirmed Bermuda’s A+ long-term sovereign credit and senior unsecured debt ratings and importantly that their outlook remains stable. A significant factor was the Government’s prudent management of the COVID-19 pandemic which resulted in the safe and successful reopening of our economy, allowing businesses to reopen and people to go back to work.

“Of note to S&P’s favourable outlook was the resumption of commercial flights and reopening of most nonessential sectors in July, which is expected to help to largely confine the negative impact of the pandemic to 2020.

“The COVID-19 pandemic has had a significantly negative impact on our economy and continues to present a multitude of challenges, but this Government continues to persevere, adapt, and innovate to satisfy new demands for financial assistance, and to ensure that there are funds to execute the normal functions of Government.

“Whilst we recognize there is still much work to be done, we view S&P’s affirmation as a vote of confidence that Government’s people-centered approach to our financial obligations is correct and is motivation to work even harder to get the Bermuda economy back on track.

“I maintain that this positive rating is a result of a collective effort, and I want to take this opportunity to thank everyone who has played a role in helping the Government to get our economy going again. Whether it is by supporting our local businesses, creating new job opportunities, or instituting new training schemes to retool local workers, your efforts have not gone unnoticed and are greatly appreciated.”

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Comments (6)

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  1. Noah James says:

    what is the latest budget deficit forecast? why don’t we see you? where are you?

    • I know says:

      He is looking at ways to tax us even more! With the constant increase in debt comes the payment of that debt and WE the taxpayers are accountable for that!

      It’s like having someone loaning the money in your personal account out to the general public and then asking you to take the loss when those loans cannot be repaid

      Wake up Bermuda! These politicians are all! None of them care about your quality of life and they only see short term politically motivated solutions to keep the sheep votes!

  2. Average Bermudian says:

    Why don’t you give credit when it is due ????

  3. Goose says:

    Does a large current account surplus and a stack of liquid assets mean no tax increases in the next budget then?

  4. Ringmaster says:

    S & P is one of the rating agencies that caused the worldwide financial meltdown in 2008 because they didn’t understand the markets. The PLP then used the worldwide recession as their excuse for the massive increase in debt and their financial ineptitude. Today the PLP are saying how great Bermuda is because S & P say so. How much dd Bermuda pay for such a positive review? Talk about ignorance. Lambs to the slaughter.