In our view, Bermuda is experiencing a prolonged economic downturn; deteriorating fiscal performance; and deteriorating loan performance in its banking sector. We are revising our outlook on Bermuda to negative from stable and affirming our 'AA-/A-1+' long- and short-term issuer credit ratings. Substantially worse-than-expected economic, fiscal, or banking-sector indicators could cause us to lower our ratings, most likely to 'A+/A-1'. On March 28, 2013, Standard&Poor's Ratings Services revised its outlook on Bermuda to negative from stable and affirmed its 'AA-/A-1+' long- and short-term issuer credit ratings (ICR) on the country. The negative outlook reflects Standard&Poor's view of the potential of a downgrade over the next two years if the country's economy fails to show signs of
