S&P: Bermuda view to negative

Standard & Poor's said it revised the outlook on Bermuda to negative from stable and affirmed its AA-/A-1+ long- and short-term issuer credit ratings on the country.

The negative outlook reflects the potential of a downgrade over the next two years if the country's economy fails to show signs of emerging from its contraction since 2009, S&P said.

The ratings could be downgraded if the new government's fiscal consolidation plans prove difficult to implement, the agency said, or if ongoing bank loan deterioration leads to broader banking system pressure.

The ratings are supported by the country's ongoing achievements in attracting and retaining foreign financial services companies, which underpin high per capita income and strong economic growth, S&P said.

Bermuda's lack of monetary flexibility and continued gaps in official data constrain the ratings, the agency said.

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