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S&P has reaffirmed Bermuda's sovereign credit rating of ‘A+’ and short-term rating of ‘A-1’.
The agency also assigns an ‘AA+’ rating to transfer and convertibility assessments and maintains the 'Stable’ outlook rating of Bermuda.
Bermuda is known as the oldest captive domicile and one of the world's largest captive hubs, with 630 companies registered.
In the report, S&P indicates that Bermuda’s economy is on track to continue growing, reflecting the strength in the international business sector, particularly (re)insurance.
The agency highlights: “The stable outlook reflects our expectation that the local economy will remain healthy, and support solid government finances and low debt, as well as Bermuda’s external asset position.
“We believe continued growth will support a balanced budget in line with the government’s expectations this year. We assume a commitment to fiscal consolidation will lead to balanced budgets and a slight decrease in net general government debt over the next three years.”
In response to the report, Bermuda premier and minister of finance, Edward David Burt, comments: “The S&P rating serves as a validation of the Bermuda Government's efforts towards sustained economic recovery, and is a source of encouragement for the entire Bermuda community.
“Our ‘A+’ rating from S&P indicates strong creditworthiness and financial stability. It signifies that the Bermuda government can meet its financial commitments. This rating reflects confidence in the government's fiscal management, economic policies, and overall stability.”
