Mr. Speaker, I rise today to advise Honourable Members of the recent rating report by Standard and Poor’s on Bermuda.
Mr. Speaker, Standard & Poor’s, most commonly referred to as “S&P,” is a US company that provides credit reviews, issues reports and it issues credit ratings on public and private company debt, as well as government debts.
Mr. Speaker, I am pleased to advise Honourable Members that on November 4th 2019, S&P affirmed Bermuda's A+ long-term sovereign credit and senior unsecured debt ratings as well as its A-1 short-term rating and AA+ transfer and convertibility assessment. What prompted S&P to perform this analysis on Bermuda, at this particular point in time, is due to the fact that the
Government borrowed $170 million to honor its guarantee to the lenders of the Caroline Bay project.
The headline of the report read as follows:
“Bermuda Ratings Affirmed At 'A+' On Continuing Sustained Economic Growth, Near-Balanced Fiscal Results; Outlook Positive”
Mr. Speaker, 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 also 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.
Mr. Speaker, the general public should accept the outcome of this report as an independent, objective endorsement of our fiscal and economic policies and it is gratifying to note that S&P’s have noticed the progress this government has made since we have been in office.
In closing I would like to advise Honourable Members that the Government will continue to collaboratively press ahead with our economic and fiscal policies in order to establish a better and fairer Bermuda that was promised in our election platform. As the Minister of Finance, I remain committed to exercising fiscal discipline, balancing the budget and reducing debt levels in the medium and long term.
Thank you Mr. Speaker.