HAMILTON, Bermuda, CMC – The Bermuda government says it welcomes the latest ratings action from the US-based S&P Global Ratings, which has improved the Island’s outlook to Positive from Stable and affirmed the A+ long-term sovereign credit rating and A-1 short-term rating.
“S&P’s decision to improve Bermuda’s outlook to Positive while affirming our A+ rating is an important signal of growing confidence in Bermuda’s fiscal management. Together with last week’s confirmation from KBRA, Bermuda now holds A+ ratings with Positive outlooks from two independent ratings agencies,” said Premier David Burt.
“This reflects the tangible impact of stronger revenues, disciplined debt reduction, and an economy that continues to perform well in a challenging global environment,” added Burt, who is also the Finance Minister.
S&P said the positive outlook reflects its expectation that, over the next 12 to 24 months, “corporate income tax collections will remain strong” and that the Government will “pay down its debt and strengthen fiscal balances.”
In its report, S&P said it expects Bermuda’s finances “to continue to strengthen on the back of positive preliminary indications of the first full year of corporate income tax implementation.” The agency said that this, together with Bermuda’s strong economy and the “steady performance” of the Island’s key insurance industry, contributes to “an improving credit story.” S&P also said the new tax will allow the Bermuda government “to fully repay an upcoming debt maturity in January 2027,” helping to return Bermuda to “a net government creditor position”.
The agency further highlighted Bermuda’s “effective and predictable” policymaking, the continued strength of the international business sector, and the stability of Bermuda’s key industries as important supports for the country’s economic resilience.
Premier Burt said that independent assessments like this matter because they confirm that Bermuda continues to move in the right direction and demonstrate that the Government’s disciplined financial management and a clear long-term strategy are delivering results.
“These results mean greater confidence in Bermuda’s economy and a stronger position from which to deliver even more for Bermudians.”
S&P said the positive outlook also reflects its expectation of policy continuity and institutional stability over the next two years, alongside continued strength in Bermuda’s key industries.
Premier Burt said that the Bermuda government will remain focused on responsible financial management, reducing debt, strengthening public finances, and building a fairer and more secure future for all Bermudians.
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