Isle of Man Credit Rating Reaffirmed by Moody's

The Isle of Man Government’s economic diversity, proactive policy-making and substantial reserves are all noted in the latest Credit Opinion Update report on its financial standing from the international ratings agency Moody’s.

The report provides updated analysis of the Island’s economic and fiscal position and sees the Island’s credit rating and outlook remain at Aa3 stable, the same as the United Kingdom.

Moody’s forecasts that the Island’s Gross Domestic Product (GDP) growth will remain robust, recording 2.5% in 2025 and stablising to 3% in the medium term. The Island’s real GDP growth has averaged an estimated 1% per year between 2014 and 2024.

The report notes that, in 2020, the coronavirus pandemic pushed the Island into a rare economic contraction, although it posted a robust recovery in 2021. Following a contraction in 2022, the economy has quickly rebounded.

Treasury Minister Dr Alex Allinson MHK said: ‘Maintaining an Aa3 stable credit rating from Moody’s is a strong endorsement of the Isle of Man’s sound financial management and resilience. This approach reflects our commitment to the Island’s economy through prudent fiscal policies and economic diversification, while safeguarding reserves and Government finances.

‘The positive growth outlook underlines the strength of our economy and reflects confidence in the Island’s long-term stability from a highly-respected and independent international agency.’

The credit rating announcement coincides with the publication of the Isle of Man Government’s Summary Management Accounts covering the first six months of the current financial year, up to 30 September 2025.

Government income is forecast to end the year £24.1m ahead of budget, mainly driven by higher than budgeted income tax receipts. As a result, the planned withdrawal of reserve fund interest is not required and total Government reserves are now valued at over £2 billion.

The Manx Care forecast remains consistent, leading the Department of Health and Social Care to project an £11.1m budget overspend. The full year net expenditure forecast exceeds the budget by £7.2m.

The majority of departments and bodies are forecast to end the year either broadly in line with their budget or with a favourable variance, and work is ongoing to enhance financial management and control.