S&P Reaffirmed Bermuda’s A+ Credit Rating
Premier and Minister of Finance David Burt today announced that ratings agency Standard & Poor’s [S&P] has reaffirmed Bermuda’s A+ Sovereign Credit Rating as well as Bermuda’s A-1 short-term rating and its AA+ transfer and convertibility assessment.
A Government spokesperson said, “ S&P also maintained the “stable” outlook for Bermuda’s Credit Rating. In their 2022 report, which was published today, S&P indicated that they expect Bermuda, over the next several years, to continue to benefit from the growth in the international financial sector and a pickup in tourism and that this growth will lead to reduced deficits and less borrowing.”
“S&P highlighted in their report that, “Economic activity should support low fiscal deficits with limited need for new borrowing. The government’s borrowing needs will largely be focused on refinancing upcoming maturities due in 2022 and 2023. We expect Bermuda’s net debt burden will remain low.”
“The report continued the positive stance regarding Bermuda by stating that, “The stable outlook reflects that the economic recovery underway in Bermuda will continue during the forecast horizon. We view Bermuda’s policymaking as largely effective, predictable, and proactive: and its political institutions as stable. We believe the territory can and is willing to implement reforms to ensure the long-term sustainability of public finances.”
In response to the report Premier Burt stated, “Today’s news that S&P has reaffirmed Bermuda’s A+ Credit Rating and that the outlook remains stable, following their annual review carried out in April 2022, is an independent validation of this government’s fiscal strategy.
“Despite the challenges of a once in a century pandemic, we have met the aggressive debt targets laid out in Bermuda’s Economic Recovery Plan, and continue to advance policy initiatives necessary for long-term economic growth. We have done this while providing unprecedented relief to individuals and businesses while cutting payroll taxes for workers and reducing vehicle licensing fees.
“Bermuda’s Credit Rating is important to ensure our continued economic stability and growth of our international business sector. Downgrades to our credit rating will lead to even higher interest rates for residents and that is something Bermuda must avoid. The government is committed to maintaining our ratings while keeping our promise to provide more relief to Bermuda’s taxpayers as they face inflation caused by global events.”
Thank you curtis!