Research Update: Bermuda Outlook Revised To Stable From Positive On Slower Economic Growth, Weaker Debt Position; 'A+' Ratings Affirmed

With travel restrictions in place across the globe, the global spread of COVID-19 will have a negative impact on Bermuda's tourism sector, in which visitors largely from North America contribute to its GDP and fiscal revenues. Nevertheless, we believe that the international financial services (IFS) sector's large contribution to the islands' economy will help temper the pandemic's impact on the territory's growth prospects and fiscal results. Accordingly, we are revising our outlook on Bermuda to stable from positive, and affirming our ratings, including our 'A+' long-term sovereign credit rating, on the territory. The stable outlook reflects our expectation that the territory's real GDP growth will contract modestly in 2020 before staging a slow recovery, setting the stage for a gradual

...- With travel restrictions in place across the globe, the global spread of COVID-19 will have a negative impact on Bermuda's tourism sector, in which visitors largely from North America contribute to its GDP and fiscal revenues. - Nevertheless, we believe that the international financial services (IFS) sector's large contribution to the islands' economy will help temper the pandemic's impact on the territory's growth prospects and fiscal results. - Accordingly, we are revising our outlook on Bermuda to stable from positive, and affirming our ratings, including our 'A+' long-term sovereign credit rating, on the territory. - The stable outlook reflects our expectation that the territory's real GDP growth will contract modestly in 2020 before staging a slow recovery, setting the stage for a gradual decline in the fiscal deficit in 2021....

Research Update