David Burt told the House of Assembly that the Standard & Poors upgrade from stable was important “as it supports lower interest payments and stimulates greater consumer and investment confidence”.

He added: “The general public should accept the outcome of this report as an independent, objective endorsement of our fiscal and economic policies and it is gratifying to note that S&Ps has noticed the progress this Government has made in the short period we have been in office.”

Mr Burt added: “As the Premier and Minister of Finance, I remain committed to creating an economy that works for all Bermudians and continuing our fiscal consolidation efforts.”

Standard & Poors also affirmed the island’s A+ long-term sovereign credit and senior unsecured debt ratings as well as its A-1 short term ratings and its AA+ transfer and convertibility assessment.

The agency’s report said: “The positive outlook reflects our expectations that, in the next 12 to 24 months, real Gross Domestic Product growth will remain moderately positive, fiscal deficits will continue to narrow approaching balance and Bermuda’s net general government creditor position will improve modestly.”