“Bermuda's Economy is moving in the right direction, and the Government will keep its promise to deliver even more relief to workers while maintaining fiscal discipline,” said Premier and Minister of Finance, the Hon. E. David Burt, JP, MP, as he announced that Moody’s Investor Service (“Moody’s”) affirmed Bermuda’s A2 issuer and senior unsecured bond ratings, and maintained Bermuda’s stable outlook.
“I welcome another independent validation of Bermuda's Economic strategy. Moody’s positive assessment of the Government’s management of Bermuda’s economy is reflective of this Government’s ability to manage economic storms while providing for the most vulnerable in our community. It is important to note that these ratings have been achieved, despite the fact that the Government was required to increase the debt ceiling to borrow $200 million dollars due to the guarantee on the failed Morgan’s Point project and the $44 million that taxpayers have had to pay to Skyport, both projects inherited from the previous administration.”
Moody’s press release, published on June 21, stated, “In the coming 2-3 years, Moody's expects fiscal performance will be supported by the recovery in economic activities. Moody's expects growth performance to regain momentum, compared to previous years, supporting a gradual downward trajectory in government debt. The tourism sector and investment in new hotels on the Island are important drivers for improved growth prospects.”
Moody’s press release also praised the Bermuda Government’s economic diversification efforts that form part of Bermuda’s Economic Recovery plan by stating, “Bermuda is a global centre for insurance and re-insurance industry and the sector remains attractive to new businesses. Over the medium term, Bermuda will be in a position to take advantage of new opportunities in insurance and reinsurance sectors, such as cyber and climate risk underwriting, which Moody's expects will expand in the coming years, signalling the potential for strong growth in this emerging sector in Bermuda.”
Premier Burt concluded, “Moody's gives country ratings for environmental, social and governance (ESG) and Bermuda received the highest possible score for Governance. The report highlights the Government’s fiscal and economic policies as key in maintaining Bermuda’s resilience during very difficult times globally. The strength of Bermuda’s institutions, our strong institutional framework, strong external position and large stock of assets are also themes that have been repeated. Overall, this report and the recent report from S&P reflects positively on this Government’s management of our economy and is proof positive that our economy is heading in the right direction.”
For full details of the Moody’s Press Release, please see here: www.moodys.com/research/Moodys-affirms-Bermudas-A2-ratings-maintains-stable-outlook--PR_466153