BERMUDA-Bermuda welcomes KBRA ratings.

HAMILTON, Bermuda, CMC -The Bermuda government is welcoming the latest ratings action from the New York Kroll Bond Rating Agency (KBRA), a global full-service rating agency, which has affirmed Bermuda’s long-term issuer ratings at A+ and its short-term issuer ratings at K1+, while improving the outlook on the long-term ratings from Stable to Positive.

“This is another strong independent endorsement of Bermuda’s economic direction. KBRA’s decision to affirm our ratings and revise the outlook to Positive reflects the progress Bermuda has made in strengthening the public finances, supporting economic growth, and positioning Bermuda for long-term success,” said Premier David Burt.

“Most importantly, this report recognizes that Bermuda has entered a new fiscal era. The introduction of a corporate income tax has strengthened the Government’s revenue base, improved our ability to reduce debt, and created more room to provide relief to working people and invest in Bermuda’s future,” he added.

In its report, KBRA said the Positive Outlook reflects the “constructive structural shift” in Bermuda’s public finances driven by the new corporate income tax, noting that higher expected revenues should support debt reduction and allow for payroll and other tax deductions that benefit the wider economy.

KBRA also pointed to Bermuda’s world-class international business sector, its innovation in emerging financial industries, its strong institutions and regulatory environment, which positions the island well for “continued prosperity”.

KBRA said that Bermuda achieved its first fiscal surplus in 21 years in the financial year 2024/25 and expects stronger surpluses in the years ahead as the new corporate income tax reshapes the Government’s revenue profile.

It said that this stronger fiscal position should allow Bermuda to deal with the US$605 million liability due in January 2027, while continuing to lower debt ratios over the medium term.

KBRA said Bermuda appears likely to continue posting stronger growth than in the pre-COVID and post-global financial crisis years, supported by international business, investment, economic reform, strategic government investment, and increased hospitality capacity.