Fitch cuts Bermuda

Fitch Ratings said it has downgraded Bermuda's ratings as follows: long-term foreign currency issuer default rating to AA- from AA; long-term local currency issuer default rating to AA- from AA+; and country ceiling to AA+ from AAA.

In addition, the short-term foreign currency issuer default rating is affirmed at F1+.

The outlook is negative.

Fitch said that the downgrade of Bermuda's sovereign ratings reflects four years of economic contraction, sustained high fiscal deficits and increased government debt burden. The sovereign's ability to sustain higher levels of debt is constrained by its narrow revenue base and its underdeveloped domestic public debt markets.

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