Moody's cuts Isle of Man rating to Aa1, outlook stable
Dec 16 (Reuters) - Moody's Investors Service on Monday cut the Isle of Man's sovereign foreign currency government bond rating one notch to Aa1 from Aaa.
The rating downgrade was due to risks posed to offshore financial centers such as the Isle of Man by changes in international politics and economics since the global financial crisis, Moody's said in a statement.
"Moody's believes that initiatives at the OECD and G-20 level to reduce global tax avoidance and evasion, as well as the very substantial increase in debt levels in many advanced economies, make it clear that pressures on offshore financial centers are unlikely to abate in the short term," Moody's said.
The rating outlook is now stable, Moody's said.
Moody's said the Isle of Man's economy remains more diversified than other offshore centers. As a result, its growth performance has been stronger and less volatile than other similar offshore centers such as Bermuda or the Cayman Islands.
The Isle of Man, located in the Irish Sea between Britain and Ireland, is a British crown dependency but is not part of the United Kingdom or the European Union.
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