...Institutional and economic profile Flexibility and performance profile Stable institutions and a wealthy economy support the ratings. Fiscal and external balance sheet strengths partially mitigate the lack of monetary policy flexibility. --Successive governments have supported sustainable public finances and economic growth. --Low fiscal deficits and sizable government assets underpin low net debt to GDP, although high interest costs, foreign currency denomination, and non-resident holdings limit flexibility. --The current Progressive Labor Party government is implementing an OECD global minimum tax, while preserving Bermuda's low tax jurisdiction. --Bermuda reports recurring current account surpluses spurred by service and net income balances, grounded by the insurance sector, and is an external creditor. --Bermuda's prosperity also reflects its prominent role in the global insurance industry. --The territory's currency is pegged to the U.S. dollar, limiting flexibility and the ability...
