S&P reaffirms Bermuda’s A+ sovereign rating amid reinsurance growth
S&P reaffirms Bermuda’s A+ sovereign rating amid reinsurance growth | Insurance Business Canada
Reinsurance
S&P reaffirms Bermuda’s A+ sovereign rating amid reinsurance growth
Bermuda’s Premier welcomes the announcement
Reinsurance
By
Jonalyn Cueto
Bermuda’s sovereign credit rating has been reaffirmed by Standard & Poor’s, with the island nation maintaining its A+ sovereign credit rating, A-1 short-term rating, and AA+ transfer and convertibility assessment – thanks in large part to its reinsurance growth. The credit rating agency’s decision was announced by Bermuda’s Premier and Finance Minister, David Burt, in a statement that also highlighted the stable outlook accompanying the reaffirmed ratings.
The announcement comes as Bermuda’s economy shows signs of continued growth, with the international business sector, particularly insurance and reinsurance, leading the way. Additionally, tourism in Bermuda is rebounding from the impacts of the COVID-19 pandemic, contributing to the island’s positive economic outlook, The Royal Gazette noted.
According to S&P’s report, the stable outlook reflects expectations of steady economic growth, which in turn is expected to support solid government finances, low debt, and Bermuda’s strong external asset position. S&P also noted that they expect balanced budgets and a slight decrease in net general government debt over the next three years.
Premier Burt welcomed the announcement, noting that it validates the government’s careful fiscal approach. He emphasized that the A+ rating signifies strong creditworthiness and financial stability, indicating that Bermuda can meet its financial commitments.
“The S&P rating serves as a validation of the Bermuda Government’s efforts towards sustained economic recovery and is a source of encouragement for the entire Bermuda community,” said Premier Burt. “This rating reflects confidence in the government’s fiscal management, economic policies and overall stability.”
He also reiterated the government’s commitment to maintaining Bermuda’s credit rating while continuing to work on social initiatives aimed at easing the financial burden on individuals and businesses. “We remain steadfast in our commitment to our social agenda, striving to provide relief that alleviates the financial strain on numerous individuals and businesses,” he added.
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