Bob Richards says the affirmation of Bermuda’s A+ credit rating by Standard & Poor’s is evidence that the Government’s economic policies are “beginning to bear fruit”.

Mr Richards, the Minister of Finance, welcomed the rating agency’s decision, which was reported by this newspaper last Saturday.

“The key drivers that were listed as the reasons for the affirmation are improving fiscal deficits and the return of real gross domestic product growth,” Mr Richards said.

“The Ministry of Finance has been working diligently to reduce our deficit and it is pleasing that S&P has recognised this and affirmed our ratings.

“It is satisfying that our sovereign rating was affirmed at A+, especially when ratings agencies have been extremely cautious as evidenced by the ongoing downgrades of several countries.”

The ratings are important because they influence the rate of interest the Government will have to pay on new borrowings.

S&P put a stable outlook on its ratings, reflecting its analysts’ expectation that Bermuda’s economy will grow in the next two years, which in turn will assist with the country’s deficit reduction efforts.

Mr Richards said their findings were in line with the Ministry’s projections announced in the 2016/17 Budget.

“S&P continues to endorse the Government’s effective policy-making and political stability,” Mr Richards said.

“It is also pleasing to note that S&P predict that growth should come from the construction and tourism sectors, which is exactly what the Government is anticipating,” the Minister of Finance explained.

“This independent ratings update report is positive news and the Government will continue to press ahead with our two track strategy that strikes a balance between responsible growth and disciplined financial management.

“This report is further evidence that our policies are beginning to bear fruit. With the stimulus and discipline from the 2016/17 Budget that the Government put forward, we can look forward confidently to positive growth during 2016 and beyond from which all Bermudians can benefit.”