Minister of Finance, the Hon. Curtis Dickinson, JP, MP, today announced that ratings agency Standard & Poor’s (S&P) has affirmed Bermuda's A+ long-term sovereign credit and senior unsecured debt ratings as well as its A-1 short-term rating and its AA+ transfer and convertibility assessment on Bermuda after the Government borrowed $170 million to honour its guarantee to the lenders of the Caroline Bay project. The outlook also remains positive.
Minister Dickinson stated, “According to S&P, the outlook remains positive, as they believe there is a chance the Government could reach fiscal balance, which combined with growth in external Government asset values in line with historical averages, could put Bermuda on a path toward building a sustainable net creditor position.”
Minister Dickinson expanded further by saying, “I am pleased that S&P has viewed Bermuda in a positive light and has affirmed Bermuda’s A+ long-term sovereign credit and senior unsecured debt ratings given the action taken by this Government to purchase the Caroline Bay loans. In the S&P report there was recognition that the Government is on track to produce a balanced budget in the current fiscal year, and if sustained, should lower our government debt burden. There was also mention of the Government’s policy making being effective and predictable. These comments highlight the fact that the PLP Government remains committed to the island and its economy and demonstrates this through transparent and prudent governance”