Moody’s affirms Bermuda ratings

Rating agency Moody's has affirmed the Government of Bermuda's long-term A2 issuer ratings and senior unsecured bond ratings and maintained its stable outlook.

According to Moody’s the key drivers of the ratings affirmation included the fact that Bermuda’s track-record of fiscal consolidation will support debt stabilisation, with debt burden remaining in line with similarly rated peers.

In addition Moody’s said that Bermuda’s vibrant international business sector and a rebound in tourism support medium-term growth, despite subdued performance in recent years.

The stable outlook reflects Moody's expectations that fiscal consolidation efforts will stabilise debt around current levels, supported by moderate growth due to rebound in tourism activity and growth in the international business sector.

Moody’s said that: “Bermuda's country ceilings remain unchanged. The local-currency country ceiling is positioned five notches above the sovereign rating at Aaa, reflecting the economy's fundamentals, strong institutions and limited government intervention in economic activity. Also at Aaa, foreign-currency country ceiling reflects strong external position and large stock of foreign assets, indicating that the risk of restrictions on transfer and convertibility at times of stress remains very limited.”