“Bermuda’s economy is strengthening, and the results of our economic strategy are clear,” said Premier and Minister of Finance, the Hon. E. David Burt, JP, MP. “Moody’s affirmation of Bermuda’s A2 credit rating with a stable outlook reflects the progress we’ve made and the promise we’ve kept. This Government will continue to deliver relief for workers, invest in our future, and maintain the fiscal discipline that ensures long-term stability for our island.”
Moody’s press release, published on July 11, stated, “Bermuda's credit profile reflects strong institutional framework, high per capita income, and large recurring CA surpluses. These strengths support the sovereign’s capacity to absorb potential shocks, balancing the challenges posed by its small, undiversified economy and the long-term impact of demographic trends on growth. High wealth levels balance relatively low GDP growth of around 1.5% in real GDP terms over the next 2-3 years. Bermuda is on track to achieve budget surpluses this year, supported by a strong economic rebound and implementation of tax reform.
“The stable outlook incorporates our expectation of a steady decline in Bermuda's debt burden and broadly stable interest burden, balanced against the relatively low growth performance in line with pre-pandemic trends, reflecting Bermuda’s mature economy and the long-term impact of the aging population on growth potential. The outlook also takes into account Bermuda's very strong institutional framework, very high per capita income, and strong external position, which are underlying credit strengths that bolster its capacity to absorb potential future shocks.”
The review also praised the Government’s efforts to boost investment and reduce debt levels, stating “On 2 May, the FY2025/26 Budget Statement was presented to Parliament, highlighting the government’s commitment to fiscal responsibility. A projected budget surplus of $43.3 million—more than double the previous year’s surplus—is underpinned by strong GDP growth, increased revenue from the new CIT, and disciplined expenditure management. These developments support our projection that Bermuda’s financial balance will reach a surplus of around 0.5% of GDP in 2025 (see Exhibit 6). Importantly, this fiscal improvement is expected to translate into a steady decline in the debt burden, which is projected to fall from 38.4% of GDP in 2023 to 35.0% in 2025 and further to 31.2% by 2026 (see Exhibit 7). Together, these trends reflect a strengthening fiscal position that enhances Bermuda’s capacity to absorb future shocks and support long-term growth.”
Premier Burt concluded, “In 2025, Bermuda’s sovereign creditworthiness was reaffirmed by leading global agencies, underscoring confidence in our economic momentum and fiscal discipline. In addition to Moody’s review, S&P Global Ratings echoed this stability, holding Bermuda’s long-term rating at A+ and short-term rating at A-1, while highlighting successful corporate tax reforms and a steady insurance sector. Meanwhile, Morningstar DBRS upgraded Bermuda’s long-term issuer rating to A (high) and its short-term rating to R-1 (middle), both with stable outlooks, a reflection of the island’s robust growth, improving public finances, and a declining debt burden. Together, these ratings validate Bermuda’s prudent economic stewardship and our position as a resilient, well-managed financial jurisdiction.”
For full details of the Moody’s Press Release, please see here: www.moodys.com.