New ratings method sees Island slip

It’s because of a change in how the company assesses the impact of external factors and monetary flexibility on small countries.

"The Isle of Man financial position remains strong”, said Treasury Minister Eddie Teare.

"Even though a change in methodology has moved Standard and Poor’s to revise the Island’s sovereign rating to AA+, down one notch from the highest AAA rating”.

Mr Teare said, "This decision doesn’t mean the fundamental strength of the Island’s economy or its creditworthiness has changed. The Standard and Poor’s report maintains its ‘stable’ outlook for our economy and acknowledges that the Isle of Man is characterised by a high-income level, strong fiscal balance sheet and political stability.”

 "Last month Treasury presented the annual government accounts which confirmed that the Isle of Man has a revenue surplus of £10million against a forecast of £100,000.   

"At the same time our economy remains resilient with unemployment holding at around two percent and the rate of growth for the past financial year estimated to be between four and five per cent.”