Strong political and economic profile, although the latter has been weakening Strong, but also weakening, fiscal profile Strong external flexibility, though reliant on the health of Bermuda's banks, which are experiencing sharply deteriorating loan performance. No monetary flexibility Continued significant gaps in official data, despite some progress The ratings on Bermuda are supported by our view of the country's ongoing achievements in attracting and retaining foreign financial services companies (largely reinsurance), which underpin high per capita income and, until recently, strong economic growth; its large net external asset position; and the government's net fiscal asset position, though the latter has declined with growing deficits. Constraining the ratings are Bermuda's lack of monetary flexibility, and continued gaps in official data, despite
