The Government of Bermuda welcomes the latest ratings action from Kroll Bond Rating Agency (KBRA), which has affirmed Bermuda’s long-term issuer ratings at A+ and its short-term issuer ratings at K1+, while improving the outlook on the long-term ratings from Stable to Positive. The improved outlook to Positive signals that KBRA sees the potential for an upgrade in Bermuda’s long-term ratings if current positive trends are sustained.
Premier and Minister of Finance, the Hon. E. David Burt, JP, MP, said: “This is another strong independent endorsement of Bermuda’s economic direction. KBRA’s decision to affirm our ratings and revise the outlook to Positive reflects the progress Bermuda has made in strengthening the public finances, supporting economic growth, and positioning Bermuda for long-term success.”
The Premier continued: “Most importantly, this report recognises that Bermuda has entered a new fiscal era. The introduction of a corporate income tax has strengthened the Government’s revenue base, improved our ability to reduce debt, and created more room to provide relief to working people and invest in Bermuda’s future.”
In its report, KBRA said the Positive Outlook reflects the “constructive structural shift” of Bermuda’s public finances from the new corporate income tax. The agency noted that higher expected revenues should support debt reduction and allow for payroll and other tax deductions that benefit the wider economy. KBRA also pointed to Bermuda’s world-class international business sector, its innovation in emerging financial industries, its strong institutions and regulatory environment, which position the island well for “continued prosperity”.
KBRA further noted that Bermuda achieved its first fiscal surplus in 21 years in FY 2024/25 and expects stronger surpluses in the years ahead as the new corporate income tax reshapes the Government’s revenue profile. The agency said this stronger fiscal position should allow Bermuda to extinguish the $605 million liability due in January 2027, while continuing to lower debt ratios over the medium term.
KBRA said Bermuda appears likely to continue posting stronger growth than in the pre-Covid and post-global financial crisis years, supported by international business, investment, economic reform, strategic government investment, and increased hospitality capacity.