Post-election Bermuda has lost its "positive" outlook in the eyes of one of the world's top debt rating agencies.

A perceived lack of transparency in various branches of Government, underlined by overdue audit accounts in almost 20 Government organisations and public funds, together with increasing social polarisation and the likely cost of PLP election promises on the public purse have all been factored in by Standard & Poor's.

The New York-based financial analysis corporation has given a mixed assessment of the future for Bermuda following the election, removing the golden gleam of a "positive" outlook to one of "stable", which is more in keeping with the consistent standing of the Island over most recent years.

On the whole, Bermuda looks set to continue to enjoy its prosperity and economic growth, although this is likely to be curtailed in line with US growth in the coming year.

S&P's has picked up on what it calls "increasing-but-still-minor concerns regarding social polarisation, the business environment and transparency of Government."

As a result it has lowered its outlook for the Island by a notch.

However, Finance Minister Paula Cox said last night she was pleased that S&P's continue to rate Bermuda "AA" and that the stable rating "has been the consistent norm for the last several years and is a good, credible and sound rating". She has also given an assurance that the Island's fiscal position will continue to be "safe and sound".

In its first assessment of Bermuda since the December 18 general election Standard & Poor's has commented on the financial implications of PLP election promises ranging from enlarging health care for seniors to providing free public transport.

It is also concerned about the high number of Government organisations and public funds that had not had their 2006 accounts audited by the start of this year, and the even longer overdue audits of the Contributory Pension Fund and Hospital Insurance Fund.

However, Standard & Poor's also noted the PLP's track record for responsibility in Government since 1998, that, and the fact that Ms Cox remains in place as Finance Minister, are reason to expect limited financial slippage in the coming year.

There was praise for Bermuda's "good macroeconomic policy track record".

However, the rating service fears PLP election promises, such as free public transport and free day care will cause higher deficits within the public purse.

Ms Cox said: "Our fiscal position will continue to be one that is sound and stable. Our election platform sets out our plans and programmes over the course of the next few years until the next election and our annual Throne Speech and Budget Statement sets out the policy priorities on an annual basis for service delivery to the people of Bermuda.

"Our focus is realistic balanced economic growth that helps to advance the people of Bermuda and Bermuda as a jurisdiction — that commitment is unwavering."

• Full report in Business