Fitch Ratings has affirmed Bermuda's credit rating at AA+, just one notch below the top AAA grade.

The ratings agency's decision is important as it means Government will avoid any increase in borrowing costs that would have come with a downgrade.

In its commentary, published yesterday, Fitch said Bermuda had suffered its worst economic contraction since 1992 after its economy was buffeted by the financial crisis during the past two years.

Now, Fitch sees signs of a gradual recovery emerging, although with no strong rebound expected in the short term.

Premier Paula Cox welcomed Fitch's action and 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."

Full story in Business, Page 24