Moody’s Periodic Review Of Bermuda’s Ratings
Moody’s has completed a ‘periodic review’ of Bermuda, noting our “strong institutional framework and a fiscal policy track record that built credibility by arresting the deterioration of the government’s finances in the context of adverse economic conditions.”
Speaking at a press conference earlier today, Minister of Finance Curtis Dickinson said, “I am pleased to advise you today of information highlighted in a recent press release published by Moody’s Investor Service to announce the completion of a periodic review of the Bermuda Government ratings.
“In general, their review sheds a positive light on Bermuda, and the efforts made by this Government to navigate the country through the current pandemic and to build for the future. Their report echoes the same sentiments as their annual credit analysis, published earlier in the summer, which also speaks favorably of the Government’s stewardship during these turbulent times.
“This marks the second time in three weeks that I have been able to announce encouraging news from a credit rating agency after having reported on October 12th of the favorable assessment by Kroll Bond Rating Agency’s [KBRA],” the Minister said.
The statement from Moody’s said, “Moody’s has now completed the periodic review of a group of issuers that includes Bermuda and may include related ratings through a discussion held on 21 October 2021.
“The review did not involve a rating committee, and this publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future; credit ratings and/or outlook status cannot be changed in a portfolio review and hence are not impacted by this announcement.
“The credit profile of Bermuda [issuer rating A2] is supported by the country’s “ba1″ economic strength, reflecting the Bermudian economy’s small size, relatively subdued growth rate and very high income levels.
“Our assessment of the strength of Bermuda’s institutions and governance is set at “a2″, reflecting a strong institutional framework and a fiscal policy track record that built credibility by arresting the deterioration of the government’s finances in the context of adverse economic conditions.
“Our assessment of fiscal strength at “a3″ takes account of the government’s moderate debt and interest burden and stable debt ratios for the last five years. Bermuda’s “a” score for susceptibility to event risk reflects risks posed by external political factors, including greater international scrutiny over Bermuda’s tax regime and the potential economic and fiscal impact.”
“The review did not involve a rating committee, and this publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future”
Well, that is comforting!