Credit rating agency Standard & Poor’s Ratings Services has raised its outlook on Bermuda’s creditworthiness to stable from negative.

The action lifts the immediate threat of a credit downgrade, which would have resulted in Government having to pay higher rates of interest to borrow money.

In a statement released today, S&P said its decision reflected receding economic, fiscal, and banking-sector risks compared with our expectations in mid-2009.

S&P affirmed the Island’s AA long-term credit rating and noted that Government had low, although increasing, indebtedness.

* For the full story see tomorrow's Business section of The Royal Gazette.