As published on royalgazette.com, Thursday 16 April, 2020.
Standard&Poor’s, the United States ratings agency, has updated its outlook on Bermuda from positive to “stable”, the Ministry of Finance announced this evening.
The move represents a minor downgrade for the island, reflecting the impact of the Covid-19 pandemic.
Curtis Dickinson, the finance minister, said that S&P had revised Bermuda’s A+ long-term sovereign credit and senior unsecured debt ratings, as well as its A-1 short-term rating and its AA+ transfer and convertibility assessment, from positive to stable.
The agency reviewed its rating on ten jurisdictions in the Caribbean and North Atlantic that depended on tourism, since the industry had been hard hit by the outbreak.
Mr Dickinson said: “As a result, Bermuda was assessed as being stable, as there is an expectation of a moderate increase in debt and negative growth in tourism.”
He added: “However, S&P noted that international business will still contribute positively towards the economy.”
Mr Dickinson said the island’s economy “will change” because of the crisis.
He said: “The establishment of the Covid-19 Economic Advisory Committee will also be paramount to helping us to maintain a quality sovereign credit rating as the Government rises to the challenges brought on by the pandemic.”