Bermuda's creditworthiness has been given a vote of confidence by credit ratings firm Fitch.

The firm yesterday announced it had affirmed the Island's long-term issuer default rating (IDR) at AA+ and its country ceiling rating at AAA, with a stable outlook.

"I am delighted that this confirmation of Bermuda's excellent credit standing and the endorsement of Government's economic policy measures come in the midst of these troubling economic times.

Finance Minister Paula Cox said yesterday that Government was "immensely pleased with this objective endorsement".

A high per-capita income, low public debt burden, and a mature, domestic political system supported Bermuda's sovereign creditworthiness, Fitch said.

"The ratings also reflect Bermuda's strong offshore international financial centre underpinned by a proven track record of effective management of the economy and business environment," said Casey Reckman, associate director in Fitch's sovereign group.

"Complementing Bermuda's strong political institutions, financial system supervision continues to improve and uphold high international regulatory standards."

Fitch's ratings report also pointed to improvements in the island's anti-money laundering and combatting the finance of terrorism regime, with shortcomings highlighted in the assessment published by the International Monetary Fund in January this year having been addressed quickly.

Bermuda remains one of the world's most prosperous economies, with the third highest GDP per capita at market exchange rates among Fitch-rated sovereigns. Bermuda's GDP and foreign currency earnings growth continues to be strong relative to other high-income economies. Inflation is consistently in the low single digits and the current account balance has been in surplus since 1991.

Fitch said Bermuda had developed a dynamic international business sector, particularly strong in the global reinsurance industry, which attracted major firms with "its liberal regulatory and tax environment", as well as an accumulation of capital and underwriting talent.

Maintenance of the island's reputation as a domicile of choice for reinsurance and financial services companies should provide the basis for sustainable growth going forward, Fitch added. Fitch's report added:

"The government maintains a sound fiscal policy framework, which includes a 10 percent of GDP policy limit for net general government debt and a sinking fund for repayment of future maturities.

"Bermuda's 2007 general government debt as a proportion of GDP of 6.1 percent compares quite favourably to the AA category median of 24.1 percent, a trend which Fitch projects will persist over the forecast horizon, even with higher social expenditures.

"Limited information about the debt of foreign-owned entities residing in Bermuda remains the key rating constraint, even though these liabilities are highly unlikely to affect Bermuda's public finances or the domestic financial system."

"Government is immensely pleased with this objective endorsement and will continue to manage the economy with prudent and sound policy measures," Ms Cox said yesterday.

"You will note that in July 2008, I gave the Legislature and indeed the general public an update on the global and local economic outlook for the balance of 2008.

"I noted the impact of the sub-prime debacle, the higher level of inflation and the general softening in the US economy. As Finance Minister, I have also presented Cabinet with a detailed briefing ahead of preparations for the 2009/10 Budget.

"This Government is operating strategically and economic policy will be geared to produce the optimum outcome for all participants in Bermuda's economy and the wider community as we go forward."

Fitch also affirmed Bermuda's long-term local currency IDR at AAA and its short-term IDR at F1+.