THE Isle of Man has lost its AAA sovereign rating.

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

According to the Island's Treasury Minister the Island's financial position "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."

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