Column: Adams On Ratings, Economy & More
[Column written by MP Jache Adams]
I recognise how politics in Bermuda has a history of surfacing people’s biases, affiliations, and agendas and also recognise that quite often we lose sight of the message because of our opinion of the messenger which is why an independent assessment is so valuable.
The people of Bermuda, regardless of their political orientation, should be encouraged by the news that rating agencies Standard & Poor’s [S&P] reaffirmed Bermuda’s ‘A+’ Sovereign Credit Rating with a ‘Stable’ outlook and most recently Moody’s reaffirmed Bermuda’s ‘A2’ Credit Rating with a ‘Stable’ outlook as well.
The One Bermuda Alliance referred to S&P and Moody’s as the “gold standard of credit rating agencies” stating “their credentials were impeccable and stood the test of time” and I could not agree more. Both S&P and Moody’s are world leading providers of independent credit ratings and their recent ratings and commentary of Bermuda cannot be ignored.
As a country we should feel proud that S&P stated that their “expectation is that the local economy will remain healthy, supporting government finances, limiting the need to increase gross debt, and supporting the territory’s external position [including current account surpluses]”.
It is compounded and further reassuring to see Moody’s recently state their rating outlook reflects their “assessment of policymakers’ continued commitment to a prudent fiscal stance, which will help stabilize Bermuda’s debt burden in the next two to three years”.
I understand these comments do not fit the long held narrative some have of this Government but when you consider the growth in Bermuda’s GDP, our declining deficits, our path to a balanced budget next fiscal year, our ability to reduce our debt this month, coupled with the fact that unemployment is declining, and our improving tourism figures, these ratings help validate that we are managing our economy prudently, effectively, and with an inclusive approach that is working.
This Government understands that more can and must be done to advance initiatives that will ease the financial pressure on struggling Bermudians, expand opportunities, and break down impediments to Bermudian success. As we remain connected with the community we accept there are still critical challenges within our community that need to be addressed.
Your Government remains committed to the difficult balance of managing the public purse responsibly while advancing a socially conscious agenda. This is demonstrated by the fact that the Government’s deficit has steadily decreased while reducing payroll taxes for the majority of the workers in the country, increasing pensions for our seniors, placing a price freeze on fuel, and other continued efforts to tackle the cost of living.
S&P and Moody’s have no political biases, affiliation, or agenda; they simply review the facts and report their findings. The latest ratings from S&P and Moody’s are an independent endorsement of this Government’s fiscal strategy and provide reasons for hope and optimism. While we continue to execute on our agenda Bermudians should feel encouraged and we ask that you remain steadfast as we continue on our path of economic recovery.
- MP Jache Adams, Constituency 19 – Pembroke West
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