Saying the fiscal effect of Hurricane Fabian on Bermuda was "minimal", international ratings agency Fitch Ratings yesterday affirmed the long-term foreign currency rating of 'AA' and the long-term local currency rating of 'AAA' for Bermuda.

The agency said the the country's short-term rating of F1+ was also affirmed. The Rating Outlook is Stable.

In a Press release, Fitch said that prior to Hurricane Fabian, economic momentum was picking up in Bermuda and in spite of the negative effect of Hurricane Fabian in the last quarter of 2003, real economic growth reached a better-than-expected 2.5 percent.

"The fiscal effect of Hurricane Fabian was minimal," Fitch said.

"While insurance proceeds covered most of the costs associated with damage from the storm, the government estimates it spent an additional $10 million (or about 0.25 percent of GDP) to cover uninsured costs.

"The estimated total damage to the public sector's infrastructure, buildings, and equipment was around $40 million."

Jeff Bell, consultant to the Ministry of Finance, yesterday stressed the figures are for "the wider Government" which includes "the Wedcos and BLDCs ? all Government quangos."

The Fitch release also said: "In spite of some fiscal pressure arising from the aftermath of Hurricane Fabian, public debt remains low relative to similarly rated credits.

"It is the government's policy to maintain its debt/GDP ratio below ten percent, and all borrowing is for capital projects only.

"Bermuda's position as an offshore centre remains solid and will continue to provide growing benefits to the Bermudian economy.

"Since 2001, the market has attracted more than $15 billion of new capital for start-up and existing Bermuda insurers."

Fitch added: "High per capita income, consistent GDP and foreign currency earnings growth, prudent fiscal policy, an established track record of financial, and exchange rate stability, as well as a mature domestic political system support Bermuda's long-term foreign currency rating of 'AA'."

Mr. Bell said: "We haven't got a better number than that which we published in the Minister's statement in February.

"The surprising thing is that work is still ongoing so the number may change in time but at the moment this is the best figure we have."