THE Isle of Man lost its AAA sovereign rating in November.

Standard and Poor's revised the Island's rating from AAA, the highest it could be, to AA+.

However the Island's Treasury Minister said the Island's financial position still "remains strong".

Eddie Teare MHK 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.

"The move to this new method by Standard and Poor's has similarly affected a number of other countries who have also had their ratings revised."

The revision in rating has been driven by a change in how the rating agency assesses the impact of external factors and monetary flexibility on small countries such as the Isle of Man.

According to the Minister the Isle of Man's financial indicators remain strong.

He continued: "Government is successfully delivering its five year rebalancing plan which is on track.

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

The chairman of the Manx Business Connection, John Webster, said he didn't think the rating drop by Standard and Poor's would affect the attractiveness of the Island. To see what he said click here.

This story is part of isleofman.com's Review of the Year 2011.