This report supplements our research update "Bermuda 'AA-/A-1+' Sovereign Credit Ratings Affirmed; Outlook Remains Negative," published on April 1, 2014. To provide the most current information, we may cite more recent data than that stated in the previous publication. These differences have been determined not to be sufficiently significant to affect the rating and our main conclusions. The ratings on Bermuda reflect Standard&Poor's Ratings Services' view of the country's ongoing achievements in attracting and retaining foreign financial services companies (largely reinsurance), which underpin high per capita income; its large net external asset position; and the government's net fiscal asset position, though the latter has declined with growing deficits. Constraining the ratings are Bermuda's lack of monetary flexibility and
