Research Update: Bermuda Ratings Affirmed At 'A+' On Continuing Sustained Economic Growth, Near-Balanced Fiscal Results; Outlook Positive

The Government of Bermuda borrowed BD$170 million recently to honor its guarantee to the lenders to the Caroline Bay project, which, together with reduced values for external government assets in the wake of the sell-off of equity markets in 2018, will put it in a net general government debtor position for fiscal years 2019-2020 and 2020-2021. The government, however, is progressing toward near-balanced fiscal results in 2019-2021 despite relatively low real and nominal GDP growth in 2018, which could help ease Bermuda's net general government debt burden and aid the island's return to net general government creditor status in 2021-2022. Accordingly, we are affirming our 'A+' long-term sovereign credit and senior unsecured debt ratings, as well as our 'A-1' short-term

...- The Government of Bermuda borrowed BD$170 million recently to honor its guarantee to the lenders to the Caroline Bay project, which, together with reduced values for external government assets in the wake of the sell-off of equity markets in 2018, will put it in a net general government debtor position for fiscal years 2019-2020 and 2020-2021. - The government, however, is progressing toward near-balanced fiscal results in 2019-2021 despite relatively low real and nominal GDP growth in 2018, which could help ease Bermuda's net general government debt burden and aid the island's return to net general government creditor status in 2021-2022. - Accordingly, we are affirming our 'A+' long-term sovereign credit and senior unsecured debt ratings, as well as our 'A-1' short-term ratings, and '##+' transfer and convertibility assessment on Bermuda. - The outlook remains positive, as we believe there is a chance the government could reach fiscal balance, which combined with growth in external...

Research Update