Fitch Affirms and Withdraws Bermuda's Ratings at 'A+'

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed Bermuda's Long-term foreign and local currency Issuer Default Ratings (IDRs) at 'A+'. The Rating Outlook is Stable. Fitch has simultaneously withdrawn the ratings.

The ratings are as follows:

--Long-term foreign-currency IDR: 'A+';

--Long-term local-currency IDR: 'A+';

--Issue ratings on Bermuda's senior unsecured foreign and local currency bonds: 'A+'

--Short-term rating: 'F1';

--Country Ceiling: 'AA'.

Real GDP has declined since 2008 and public debt has risen from a low base to around 40% of GDP. However, Bermuda's ratings are supported by its high income (GDP per capita is among the highest of Fitch-rated sovereigns), consistent current account surpluses and strong net external creditor position. A sophisticated legal system, strong regulatory framework, simple tax regime, proximity to the U.S. and skilled human capital allow Bermuda to maintain a competitive advantage as a domicile for reinsurance and financial services companies.

Fitch is withdrawing the ratings for commercial reasons. Accordingly, Fitch will no longer provide ratings or analytical coverage for the issuer.

KEY ASSUMPTIONS

Fitch's forecasts assume that Bermuda's real GDP stabilizes in 2015-2016, and that Bermuda maintains its attractiveness as an insurance and re-insurance jurisdiction.

Current account surpluses will provide support to the fixed exchange rate regime.

Additional information is available on www.fitchratings.com.

Applicable criteria, 'Sovereign Rating Criteria' dated 12 August 2014 and 'Country Ceilings' dated 28 August 2014, are available at www.fitchratings.com.

Applicable Criteria and Related Research:

Country Ceilings

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=752194

Sovereign Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754428

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985177

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150521006526/en/

Fitch Ratings
Primary Analyst:
Charles Seville, +1-212-908-0277
Senior Director
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Secondary Analyst:
Kelli Bissett-Tom, +1-212-908-0564
Associate Director
or
Committee Chairperson:
Shelly Shetty, +1-212-908-0324
Senior Director
or
Elizabeth Fogerty, +1-212-908-0526
Media Relations, New York
[email protected]

Source: Fitch Ratings

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