Treasury Minister Eddie Teare MHK says the downgrading of the Isle of Man’s government bond ratings from Aaa to Aa1, confirmed by Moody’s Investors Services on Friday December 13, 2013, is not unexpected.
The move concludes a review for downgrade announced by Moody’s on July 26 this year.
Mr Teare commented: ‘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 such as the Isle of Man, and the outlook for the new rating is stable.’
The Minister concluded: ‘It is reassuring to note that in their assessment of the Island Moody’s have clearly recognised the strength and diversity of our economy compared to competitor jurisdictions, and the fact that we do not borrow to fund revenue spending.’
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