Despite its devastating blow to the Island's infrastructure, Hurricane Fabian is not seen as leaving a long-term mark against the Island's economy.

Yesterday, rating agency Standard & Poor's affirmed its AA long-term and A-1+ short-term sovereign credit ratings for Bermuda. S&P, which made the announcement on the country's ratings following the Island's devastation by Hurricane Fabian on Friday, also announced that its strong ratings for the country were given a stable outlook - an indication that any downgrade to that rating was unlikely. In effect, S&P's ratings mean it considers the Bermuda Government as having "very strong capacity to meet its financial obligations".

In a press statement, S&P credit analyst Olga Kalinina confirmed the rating affirmation took into account the damage inflicted by Hurricane Fabian. "The ratings on Bermuda incorporate the small Island's vulnerability to external events, including those that are weather related," she said. Mrs. Kalinina continued: "Bermuda's strong fiscal position and sound macroeconomic fundamentals provide a cushion to absorb the losses incurred as a result of the hurricane," she added.

S&P said the Island's general government debt stood at four percent of the gross domestic product in 2002 and that the hurricane was expected to have no lasting impact "on either the attractiveness or financial health of Bermuda's international financial sector, the economy's main growth engine".

It is understood that the rating is based on information provided by the issuer - in this case, Government - and other information the agency said it considered "reliable".