BERMUDA: Moody’s Affirms Bermuda’s A2 Rating; Outlook Stable

Thursday May 24 2018

On 23^rd May 2018, Moody’s Investors Service affirmed the Government of Bermuda’s A2 issuer ratings and its A2 senior unsecured bond ratings. The outlook remains stable.

The key drivers for the rating affirmation are as follows:

• Bermuda’s economic strength, which is supported by high wealth levels and improved medium-term growth prospects but constrained by its small size and lack of diversification;
• The continuation of a prudent fiscal policy that should contribute to easing the country’s public sector debt burden, which is now comparable to similarly rated peers;
• Strong institutions, with a robust and adaptive regulatory environment, allow Bermuda to maintain a low susceptibility to events risks.

The stable outlook reflects Moody’s view that Bermuda’s improving fiscal prospects are balanced by a still-recovering economy and a continued, albeit relatively low, susceptibility to shocks stemming from changes in policies in other countries that could materially impact its economic structure.

These fiscal dynamics are balanced by a still recovering economy and Bermuda’s continued, albeit relatively low, susceptibility to potential shocks stemming from changes in policies in other countries that could materially impact its economic structure.

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