Isle Of Man Retains 'AAA' Rating

by Jason Gorringe, Tax-News.com, London

08 December 2009

The Isle of Man Treasury Minister, Allan Bell, welcomed confirmation on December 1 that the Isle of Man would retain its “AAA” credit rating by Standard and Poor’s.

The announcement comes amidst falling revenues and falling business flows as a result of the global financial crisis, alongside the uncertain future of the island's corporation tax regime in light of the review on the EU Code of Conduct on Business Taxation.

Bell commented:

“Standard and Poor’s have reviewed the financial position of the Isle of Man following the recent announcement [that revenue has fallen] from the Customs and Excise Agreement. It concluded that the Isle of Man has a robust financial position enabling us to deal with the ongoing budgetary pressures.”

“This external validation comes at an important time for us, as we are finalizing the short- and medium-term plans for rebalancing the budget. Our approach of building reserves during the years of higher growth allows us to implement a considered period of transition that will maintain the economic success and competitiveness the island has enjoyed over the last few decades.”

“It is clear that changes will have to be made in order to balance the budget. What Standard and Poor’s have concluded is that the Isle of Man has the ability and financial strength to bring these changes about, whilst maintaining its economic vitality.”

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