The Government of Bermuda has welcomed a revised ratings assessment from S&P Global Ratings, which upgraded the island’s outlook to Positive from Stable while affirming its A+ long-term sovereign credit rating and A-1 short-term rating.
The change signals growing confidence in Bermuda’s fiscal trajectory, with S&P pointing to stronger-than-expected corporate income tax revenues, ongoing debt reduction, and steady performance in the island’s key insurance-driven economy.
In its report, the ratings agency said it expects corporate income tax collections to remain strong over the next 12 to 24 months, helping Bermuda strengthen its fiscal position. It also noted that improved revenues could allow the government to fully repay an upcoming debt maturity in January 2027, potentially returning Bermuda to a net government creditor position.
Premier and Minister of Finance David Burt said the upgraded outlook reflects the impact of disciplined fiscal management and sustained economic performance in a challenging global environment. He noted that Bermuda now holds Positive outlooks from two major rating agencies, following a similar assessment from KBRA.
S&P also highlighted the stability of Bermuda’s international business sector, particularly its insurance industry, describing it as a key pillar of the island’s economic resilience. The agency further described Bermuda’s policymaking framework as “effective and predictable,” citing institutional stability and policy continuity as additional strengths.
The ratings upgrade comes amid continued implementation of Bermuda’s corporate income tax regime, which officials say is already showing early positive effects on government revenues and debt management.
Premier Burt said the findings reinforce confidence in Bermuda’s direction, adding that the government remains focused on reducing debt, strengthening public finances, and supporting long-term economic stability for residents.
S&P said its Positive outlook reflects expectations that Bermuda will maintain fiscal discipline and continue benefiting from its established financial services sector over the next two years.
