Bermuda

This report does not constitute a rating action. Overview Institutional and economic profile Flexibility and performance profile Institutional stability and a wealthy economy support the ratings. Fiscal and external balance sheet strengths partially mitigate the absence of monetary policy flexibility. --Institutional stability and a track record of policy supporting sustainable public finances and economic growth. --Low fiscal deficits and sizable government assets underpin low net debt to GDP, although high interest costs, and share of foreign currency denomination debt and holdings by nonresidents present vulnerability. --Bermuda?s prosperity also reflects its prominent role in the global reinsurance industry --Bermuda posts recurrent current account surpluses, driven by service and net income balances, grounded by the reinsurance sector, and has an external creditor

...We expect growth over the next several years will continue to benefit from the expansion in the international financial sector and a pickup in tourism. Economic activity should support low fiscal deficits with limited need for new borrowing. The government's borrowing needs will largely be focused on refinancing upcoming maturities due between 2022 and 2024 with an expected US$1 billion issuance. We expect Bermuda's net debt burden will remain low, supported by the territory's pension assets....

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