Isle of Man Retains Its AAA Credit Rating

INDEPENDENT credit rating agency Standard and Poor’s has renewed the Isle of Man Government’s AAA rating – the highest rating that it awards.
The ratings provide an independent benchmark for investors.

The review of the finances of the Isle of Man Government to issue a sovereign credit rating is carried out on an annual basis.

Carl Hawker, of the Treasury, said: ‘We see this renewal of AAA status as an external validation of the financial position of the government and of the status of the wider Isle of Man economy.

‘The rating provides an impartial external opinion for those looking to invest in or relocate to the Isle of Man, which can be a useful marketing tool in a competitive global environment.’

Achieving the AAA means that government-issued debt will pay interest at a very low rate. Banks will consider the rating in pricing debt deals.

The same applies to borrowing in the name of the government, such as the MEA.

A reduction in status from AAA to AA typically results in an increase in the interest rate on a loan of 0.25 per cent.

The retention of the highest status also means the Isle of Man can be marketed as a financially secure environment.

Credible, external validation attracts investors. Meanwhile, the rating promotes a positive national identity and reputation for the Island, and strengthens the relationship with the UK.

The announcement has been welcomed by Treasury Minister Allan Bell, who said: ‘Despite the current volatility in world markets, the Isle of Man continues to demonstrate that it is a world class jurisdiction in which to do business.’

Some offshore rivals, including the Channel Islands, chose not to be rated.

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