The ratings on Bermuda reflect Standard&Poor's Ratings Services' assessment of one of the highest income levels among rated sovereigns alongside the government's low, although increasing, indebtedness. In our view, the risk that deterioration in the financial sector could cause balance-of-payments problems or require substantial government support has receded. At the same time, the economy has proven more resilient to the financial crisis than we had previously forecast. We expect the deterioration in the general government balance to be gradually reversed from this year. Standard&Poor's estimates Bermuda's per capita GDP at US$97,000 in 2010, more than twice the 'AA' median. We now believe that the downturn in the Bermudian economy was less sharp than we previously expected,
