Bermuda’s sovereign credit rating, which helps to determine the cost of the island’s debt and its ability to borrow money, has been reaffirmed by a top ratings agency.

Standard & Poor’s has reaffirmed Bermuda's A+ sovereign credit rating, the Government said today and has given it a “stable ” outlook.

David Burt, the Premier and Minister of Finance, said S&P had also reaffirmed Bermuda's A-1 short-term rating and its AA+ transfer and convertibility assessment.

A government statement said S&P had indicated it expected Bermuda to continue to benefit from the growth in international business and from a pick-up in tourism and that this would lead to reduced deficits and less borrowing.

S&P said in its report: “Economic activity should support low fiscal deficits with limited need for new borrowing. The Government’s borrowing needs will largely be focused on refinancing upcoming maturities due in 2022 and 2023. We expect Bermuda’s net debt burden will remain low.”

It added: “We view Bermuda’s policymaking as largely effective, predictable, and proactive: and its political institutions as stable. We believe the territory can and is willing to implement reforms to ensure the long-term sustainability of public finances.”

Mr Burt said: “Despite the challenges of a once-in-a-century pandemic, we have met the aggressive debt targets laid out in Bermuda's Economic Recovery Plan and continue to advance policy initiatives necessary for long-term economic growth. We have done this while providing unprecedented relief to individuals and businesses while cutting payroll taxes for workers and reducing vehicle licensing fees.

“Bermuda's credit rating is important to ensure our continued economic stability and growth of our international business sector. Downgrades to our credit rating will lead to even higher interest rates for residents and that is something Bermuda must avoid.

“The Government is committed to maintaining our ratings while keeping our promise to provide more relief to Bermuda's taxpayers as they face inflation caused by global events.”