Hashtag: #BermudaDebt
Video: Finance Minister On Moody’s Downgrade
The downgrade by Moody’s wasn’t entirely unexpected and he does not believe it will hamper us in raising funds in investment markets going forward, Finance Minister Bob Richards said yesterday [May 17]. Minister Richards said, “I was a little disappointed in their prognostications in the outlook. I think we laid out our case pretty... Read more of this article
PLP: ‘Downgrade Should Serve As Wake Up Call’
Today’s downgrade and negative outlook by Moodys should “serve as a wake up call to the OBA”, and the new negative outlook is a “likely result of the OBA’s lack of a credible plan of action to address Bermuda’s deficit,” Shadow Minister of Finance David Burt said this afternoon [May 16]. Moody’s downgraded Bermuda’s... Read more of this article
Moody’s Downgrades Bermuda’s Rating To Aa3
[Updated] After placing the island on “review” last month, ratings agency Moody’s today [May 16] formally downgraded Bermuda’s rating to Aa3 and changed the outlook to negative. A statement issued by the Company said, “The downgrade was prompted by the steep rise in government debt and the lack of an economic recovery from the... Read more of this article
SAGE: ‘Solutions Will Come From Consultation’
Chairman of the Spending and Government Efficiency [SAGE] Commission Brian Duperreault today welcomed the formal enactment of the SAGE Commission Act 2013, noting that solutions to the economic challenges facing Bermuda will come from broad-based consultation. Mr. Duperreault said that the Act was officially gazetted on Monday, April 1 and members of... Read more of this article
Chamber Reacts To Ratings Agency Review
[Updated with PLP response + 2nd Chamber response] The recent actions by Moody’s and Standard & Poor’s are not a total surprise nor a major concern as rating agencies tend to look at past performance to project what could happen, said the President of the Chamber of Commerce Ronnie Viera. Earlier this week Moody’s placed Bermuda’s... Read more of this article
Moody’s: Review Prompted By Steep Rise In Debt
[Updated with comments from the Finance Minister & Shadow Finance Minister] Moody’s Investors Service said they have placed Bermuda’s Aa2 government bond rating on “review for possible downgrade,” citing the “steep rise in government debt since the global financial crisis and the prospect of further rises in the coming... Read more of this article
Standard & Poor’s Lowers Outlook On Bermuda
[Updated] Ratings agency Standard & Poor’s [S&P] has lowered its outlook on Bermuda from stable to negative and affirmed its ‘AA-/A-1+’ long- and short-term issuer credit ratings [ICR] on the island. “In our view, Bermuda is experiencing a prolonged economic downturn; deteriorating fiscal performance; and deteriorating loan... Read more of this article
House Passes Debt Ceiling Raise: To $2.5B
Last night Parliamentarians passed the Government Loans Amendment Act 2013, allowing for the Government’s authorized debt ceiling to raise from $1.45 billion to $2.5 billion. The raise does not mean the Government intends to immediately borrow this amount, it means it is legally permissible to. The bill still has to go to the Senate before it... Read more of this article
PwC 2013/14 Budget Highlight Summary
Following the delivery of the 2013/14 Budget this morning [Feb 22] by Minister of Finance Bob Richards, PricewaterhouseCoopers Bermuda released a highlights summary. Tom Miller, PwC Partner, commented on the budget: “It’s a budget that recognises the seriousness of our fiscal situation, while taking actions to make the Island more competitive and... Read more of this article
Document: Government Financial Statements
[Updated] The recently released financial statement show the Government’s revenue for the year ended 31 March 2012 was around $914 million, while total expenses were around $1.26 billion — a deficit of around $343 million. The expenses decreased from the previous year [2011 = $1.3B] as did the revenue [2011 = $996.7M]. The Government’s... Read more of this article
Auditor General Criticizes Financial Statements
[Updated - Auditor General confirms the net debt was $2.4 billion eleven months ago.] Auditor General Heather Jacobs Matthews commented on the audited financial statements of the Consolidated Fund of the Government of Bermuda for the year ended March 31, 2012 which were tabled by the Minister of Finance in the House of Assembly today [Feb 8]. The Auditor... Read more of this article
PLP: ‘We Reduced Taxes, Cut Spending & Deficit’
The figures released by the Ministry of Finance show that “the PLP Government was successful in its aims of reducing taxes, cutting spending, and reducing the deficit,” a statement from the Opposition PLP said. They were speaking after yesterday’s [Jan 16] press conference by Finance Minister Bob Richards about the state of the island’s... Read more of this article
