Standard and Poors and Moody’s the external ratings agencies, have both today confirmed that the Isle of Man has retained its ‘AAA’ rating, the highest rating that either agency awards.
Despite recent events in world financial markets Standard and Poors note that “the Isle of Man government’s overall robust financial position and policy flexibility should enable the Isle to weather the ongoing challenges in the global economic environment.”
With respect to the recent decision by Tynwald to make up to £150 million available under the revised Depositors Compensation Scheme, Moody’s note that “this is clearly manageable against free reserves and projected capital spending without significantly weakening the current finances of the Government.”
The Treasury Minister, Allan Bell MHK, reacted to both announcements by stating “I welcome the fact that Moody’s and Standard and Poors have reviewed their ratings and have both concluded that the Isle of Man is well placed to ride out the recent storms and will be able to withstand any future global economic downturn. We continue to attract global investment precisely because of our stable public finances and ability to respond quickly when required.”
The Triple AAA rating provides access to cheaper borrowing, acts as an important marketing tool for inward investors, and promotes a positive national identity and reputation for the Island.
HAT TIP: IoM Government