KBRA affirms Bermuda’s issuer ratings
Kroll Bond Rating Agency has affirmed Bermuda’s long-term rating at A+, with a stable outlook and short-term issuer rating at K1+.
The A+ long-term rating is in the third tier of KBRA’s rating index and indicates that the bond issuer is determined to be of high quality with a small risk of loss due to credit-related events.
The K1+ short-term rating is in the top tier of KBRA’s rating index and indicates that the issuer has an exceptional ability to meet short-term obligations.
Responding to the review, David Burt, Premier and Minister of Finance said KBRA’s ratings were positive findings for the island.
Mr Burt said: “I am pleased to report that KBRA has again maintained Bermuda’s long and short-term issuer ratings at A+ and K1+, respectively, and the outlook remains stable, which reflects Bermuda’s commitment to fiscal restraint and consolidation (even if slightly delayed), the ongoing recovery of tourism, and KBRA’s expectations for durability in its status as a financial hub.”
“This unsolicited assessment by KBRA, along with S&P’s most recent report, help to affirm that despite the challenges and risks facing Bermuda, and the rest of the world, the Government’s prudent policymaking has effectively positioned the country on a path to economic recovery.”
In their report, KBRA stated: “Bermuda’s ratings reflect its commitment to fiscal restraint and consolidation (even if slightly delayed), the ongoing recovery of tourism, and KBRA’s expectations for durability in its status as a financial hub.”
KBRA further said in their report that they expect Bermuda to be largely resilient to moves towards global corporate tax reform although risks exist as “Bermuda’s innovativeness positions it to be a hub in emerging financial industries”.
Premier Burt said he was also encouraged to see KBRA state within the report that Bermuda has no meaningful refinancing needs until 2027, and the fixed rate nature of government debt moderates near-term risks.
While KBRA notes that cybersecurity risks are a key area of focus for governance and a risk that continues to rise with technological innovation, the agency observed that the cyberattack on the Government of Bermuda on Wednesday, September 20, indicates the rising risks of such events, but also served to illustrate the evolving ability to manage such risks and also may help to increase preparedness for, and resilience to, future events.
Premier Burt commented further: “I am confident KBRA and other rating agencies acknowledge and appreciate that this Government has often avoided the political expedient path and focused on addressing the country’s most pressing issues head-on.
“As a Government, we will continue our work on tax reform, education reform, and healthcare reform, continue executing our Economic Development Strategy, reducing our deficits, and tackling the issue of underfunded liabilities to ensure economic prosperity in Bermuda for generations to come.”
• For the full KBRA report, see Related Media
Need to
Know
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
