We are lowering our long-term issuer credit and senior unsecured debt ratings on Bermuda to 'A+' from 'AA-'. We are also lowering our short-term rating on Bermuda to 'A-1' from 'A-1+'. The downgrade reflects our assessment of continuing weak economic performance and weak public finances, which we expect will persist through our two-year outlook horizon. Bermuda's six-year recession has resulted in declining revenues, which has led in turn to fiscal deficits of 5% of GDP in fiscal years 2013 and 2014. The debt-financing of deficits will increase gross interest costs to more than 11% of government revenues for fiscal years 2015-2017. The stable outlook reflects our expectations that positive economic growth will return in the next two years, fiscal deficits
