Bermuda earns Positive outlook from KBRA amid economic gains
The Government of Bermuda has welcomed a new ratings decision from Kroll Bond Rating Agency (KBRA), which affirmed the island’s long-term issuer ratings at A+ and short-term issuer ratings at K1+, while revising the outlook on the long-term ratings from Stable to Positive. The improved outlook signals that KBRA believes Bermuda could receive a future […] The post Bermuda earns Positive outlook from KBRA amid economic gains appeared first on CNW Network.
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The Government of Bermuda has welcomed a new ratings decision from Kroll Bond Rating Agency (KBRA), which affirmed the island’s long-term issuer ratings at A+ and short-term issuer ratings at K1+, while revising the outlook on the long-term ratings from Stable to Positive.
The improved outlook signals that KBRA believes Bermuda could receive a future ratings upgrade if the territory maintains its current economic and fiscal momentum.
Premier and Minister of Finance E. David Burt described the move as a strong endorsement of the government’s economic management and long-term financial strategy.
“This is another strong independent endorsement of Bermuda’s economic direction,” Burt said. “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.”
Burt said the report highlighted what he described as a “new fiscal era” for Bermuda, driven in part by the introduction of a corporate income tax.
“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 what it called a “constructive structural shift” in Bermuda’s public finances resulting from the new corporate income tax regime. The ratings agency noted that higher expected revenues could support debt reduction while also allowing for payroll and other tax deductions aimed at benefiting the broader economy.
KBRA also cited Bermuda’s international business sector, regulatory framework, and innovation in emerging financial industries as key strengths supporting the island’s continued economic prospects.
The agency further noted that Bermuda recorded its first fiscal surplus in 21 years during the 2024/25 fiscal year and projected stronger surpluses in the years ahead as the new tax structure reshapes government revenues.
According to KBRA, the stronger fiscal position should allow Bermuda to eliminate the $605 million liability due in January 2027 while continuing to lower debt ratios over the medium term.
The agency also projected that Bermuda is likely to continue experiencing stronger economic growth than in the years following the global financial crisis and the COVID-19 pandemic, supported by international business activity, investment, economic reform measures, government spending initiatives, and expanded hospitality capacity.
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