The ratings on Bermuda reflect Standard&Poor's Ratings Services' opinion of the sovereign's "very strong" political and economic profile and "moderately strong" flexibility and performance profile, as defined in our criteria (see "Sovereign Government Rating Methodology And Assumptions" published June 30, 2011, on RatingsDirect on the Global Credit Portal). Our "very strong" political and economic profile appraisal rests on our view of Bermuda's effective and predictable policymaking and its stable political institutions. Together, they have helped this the largest British Overseas Territory (BOT) to deliver solid economic growth in the past (real GDP growth averaged 3.4% per year during 1997-2007) and to manage the recent recession (with timely, targeted, and temporary stimulus and deft intervention to support Bank of
