Fitch Ratings has affirmed Bermuda’s AA+ credit rating.

Fitch said Bermuda’s sovereign ratings were supported by its strong institutions, an extremely high per capita income, sustained sizeable current account surpluses and a low public debt burden compared with peers.

But the ratings agency noted that Bermuda’s credit weakness was “its small and narrow economic base, which weakens its ability to absorb economic shocks compared with other high-grade sovereigns”.

AA+ is one notch below Fitch’s top AAA rating, and the affirmation means Government will avoid the higher borrowing costs that would have come with a downgrade.

Premier and Finance Minister Paula Cox said: “It is pleasing that our sovereign rating was affirmed at AA+ especially in these challenging economic conditions when many countries’ ratings are actually being downgraded.

“It is relevant to note that despite recent increases in debt levels Bermuda’s debt ratios are more than 40 percent below the median for the ‘AA’ category median, which includes sovereigns rated ‘AA-’, ‘AA’ and ‘AA+’.”

For more read tomorrow's Business section of The Royal Gazette.