S&P affirms Bermuda’s A+ sovereign bond rating amid reinsurance growth | Insurance business America
The Prime Minister of Bermuda welcomes the announcement
reinsurance
By Jonalyn Cueto
Bermuda’s sovereign credit rating was reaffirmed by Standard & Poor’s, with the island nation maintaining its A+ sovereign bond rating, A-1 short-term rating and AA+ transfer and convertibility rating – thanks in large part to its reinsurance growth. The rating agency’s decision was announced by Bermuda’s Prime Minister and Finance Minister David Burt in a statement that also highlighted the stable outlook that comes with the reaffirmed ratings.
The announcement comes at a time when Bermuda’s economy is showing signs of continued growth, with the international business sector, particularly insurance and reinsurance, leading the way. Additionally, tourism in Bermuda is recovering from the impact of the COVID-19 pandemic, contributing to the island’s positive economic outlook, the Royal Gazette noted.
According to the S&P report, the stable outlook reflects expectations of steady economic growth, which in turn should support strong government finances, low debt levels and Bermuda’s strong international investment position. S&P also noted that they expect balanced budgets and a slight decline in net general government debt over the next three years.
Prime Minister Burt welcomed the announcement, noting that it confirmed the government’s careful budgetary approach. He stressed that the A+ rating signifies strong creditworthiness and financial stability and indicates Bermuda’s ability to meet its financial obligations.
“The S&P rating serves as an endorsement of the Government of Bermuda’s commitment to a sustainable economic recovery and is a source of encouragement for the entire Bermuda community,” said Premier Burt. “This rating reflects confidence in the government’s financial management, economic policy and overall stability.”
He also reiterated the government’s commitment to maintaining Bermuda’s creditworthiness while continuing to work on social initiatives aimed at reducing the financial burden on individuals and businesses. “We remain committed to our social agenda and strive to provide relief that will ease the financial burden on numerous individuals and companies,” he added.
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2024-05-10 14:40:00
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