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Moody’s affirms A2 rating for Bermuda

Moody’s Investors Services has affirmed Bermuda’s A2, with the outlook remaining stable.The news was welcomed by Curtis Dickinson, the Minister of Finance, who said: “According to Moody’s, the key drivers for the rating affirmation are the Government’s track record of fiscal consolidation which will support debt stabilisation after this year’s growth shock. “Also, our debt metrics remaining in line with similarly rated peers, and our low susceptibility to event risks, reflecting Bermuda’s very strong external position and limited exposure to funding pressures were key.”Mr Dickinson added the stable outlook reflects Moody’s view that even though the global pandemic will have a negative effect on the economy, Bermuda’s “very-high-wealth levels and strong institutions, along with our ability to remain resilient in the face of severe economic stresses in the past, such as the global financial economic crisis, puts us in a good position of support once the coronavirus crisis subsides”.Mr Dickinson was pleased Moody’s had affirmed Bermuda’s A2 issuer rating and A2 senior unsecured bond ratings, as S&P had in April.“These ratings actions serve as an independent endorsement of the actions we are taking to mitigate the impact of Covid-19,” he said. “This government’s focus on fiscal consolidation, working collaboratively with all of our industry partners, and exploring feasible opportunities to bring us out of this pandemic in an even stronger position will even further strengthen and unify Bermuda.“In turn, this will translate into stronger economic growth which will further lead to an inclusive Bermuda with jobs and opportunities for all.”