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Island's credit rating still 'topnotch'

The Treasury minister is confident the downgrading of the Isle of Man's soverign credit rating by Standard and Poor's from AAA to AA+ won't have an impact on the Island.

On Mandate, Eddie Teare said the Manx government had no need for any new loans, and the Island remained in a very strong financial position.

He explained new criteria were now being used to rate countries, with more emphasis being placed on their ability to control their own currencies and exchange rates. As the Isle of Man was tied to the pound sterling it couldn't meet the relevant requirements, and had no flexibility to improve matters.

Mr Teare stressed Standard and Poor's had applied the new methodology across the board and several other countries had been similarly downgraded.

He conceded AAA sounded better than AA+, but said the Island's vital signs were good, and AA+ was still a topnotch rating, made better by its 'stable' status.

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