S&P Affirms Bermuda’s A+ Ratings

April 28, 2021

Minister of Finance Curtis Dickinson announced that ratings agency Standard & Poor’s (S&P) has reaffirmed 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, “I am delighted that S&P has reaffirmed Bermuda’s A+ long-term sovereign credit and senior unsecured debt ratings and that the outlook remains stable. It is noteworthy that S&P has highlighted, in their report, that “the stable outlook reflects our expectation that Bermuda’s moderate net general government debt burden, favourable external position (including current account surpluses), and political stability will help contain the negative impact of a sharp GDP contraction in 2020 and set the stage for economic recovery””.

“In addition, S&P has recognized that Bermuda benefits from institutional stability and its track record of implementing reforms to ensure sustainable public finances and economic growth over the long term.”

“The remarkable work done by our health, national security and COVID-19 frontline team, along with the majority of the public observing the restrictions, helps the Government to limit the damage done to the economy and ensure our economy begins to recover in the near term. The actions taken to date are seen as positive and has been appropriately reflected in this update on our credit ratings.”

“It is very reassuring that S&P views “Bermuda’s policymaking as largely effective, predictable and proactive.” It is also positive that the rating agency recognizes that the Government will implement reforms to ensure the long-term sustainability of public finances and economic growth over the long term.”

Category: All, Business, News

Comments (3)

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  1. Two Rock Passage says:

    The same rating agencies that gave AAA ratings for junk bonds that caused the US housing crisis.

    “it’s all just numbers.” Bermudians are suffering and there is no clearly defined economic plan. Just F&F plan. All the rhetoric about the airport and boat races before the election/s and now it’s all about economic recovery. Zebra stripes are changing. What exactly is the recovery plan. Stop using the words “in the future”. You sound like belco and the promise of a lower rates …….in the future. What future ? The one for our children or grandchildren will inherit? Bermudians are knowingly prevented from work by ejected public servants. Meanwhile the F&F plan has everyone getting public, quangos and private jobs using their leverage.

  2. Unbelievable says:

    This is the kind of thing that keeps Bermudians in false sense of security. We read this stuff and we think “oh ok, Bermuda and the Govt will be ok in the end”. Well, no it won’t. We’re not going to recover from this mountain of debt.

    I recognise that the S&P is geared towards the average person but the S&P needs to come down here and be on the ground and NOT talk to any Govt officials and see that things are definitely not stable at all; especially after the last 12 months we’ve just had. Plus we stand to lose a 2nd year of tourism and that is almost a certainty.

    Otherwise, the S&P is meaningless.

  3. Yes But says:

    President Biden specifically called out Bermuda, Cayman Islands and Switzerland last night in respect of closing tax loopholes.

    We need to be very mindful to build businesses that don’t simply rely on tax plays….