S&P downgrades Island

Just days after Treasury Minister Eddie Teare announced we wouldn’t be using the financial ratings company, Standard & Poor’s has downgraded the Isle of Man.

The firm says our economy is vulnerable to growing regulatory pressure, and has cut the rating from AA+ to AA.

Up until 2011, the company had rated us AAA.

Standard & Poor’s says growing industries such as egaming won’t be able to replace financial business lost through competitive pressures and tighter regulation.

In his budget on Tuesday, Mr Teare revealed the Island would give up its S&P rating and stick to ratings from Moody’s Investors Service – which downgraded the Island in December – from now on.