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Moody’s downgrade comes as no surprise, says Teare

Eddie Teare

Eddie Teare

The island has lost its triple A rating status with Moody’s.

Treasury Minister Eddie Teare MHK says the downgrading to Aa1 is not unexpected.

We lost our AAA credit rating with a second ratings agency, Standard and Poor’s, in 2011.

Moody’s placed the Isle of Man’s AAA rating on review for a downgrade on July 26 this year, the move triggered by increasing international pressures on offshore financial centres and the view that our economic prospects and public finances are vulnerable to policy decisions made in other jurisdictions.

Mr Teare said: ‘The adjustment of the island’s government bond rating comes as no surprise given the changing global economic environment, and it is part of a reassessment process affecting many countries around the world.

‘As a result of that process double A plus is becoming, in effect, the highest rating available to small jurisdictions, and the outlook for the new rating is stable. It’s reassuring to note Moody’s have clearly recognised the strength and diversity of our economy compared to competitor jurisdictions, and the fact we do not borrow to fund revenue spending.’

 

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