Fitch rates Bermuda bond AA-

Fitch Ratings said it assigned a long-term foreign currency rating of AA- to the Government of Bermuda's $750 million 4.854% global bond maturing in 2024.

The proceeds will go toward repaying public debt and fund current and future budget deficits.

The rating is in line with Bermuda's long-term foreign currency issuer default rating of AA- with a negative outlook.

On June 7, Fitch downgraded Bermuda's ratings and revised the outlook to negative from stable.

Fitch said Bermuda's AA- ratings are supported by its wealth (the fourth-highest GDP per capita among Fitch-rated sovereigns) and its high savings rate relative to its AA peers.

Bermuda maintains its competitive advantage as a domicile for reinsurance and financial services companies due to its sophisticated legal system, strong regulatory framework, simple tax regime, proximity to the United States and highly skilled human capital, the agency said.

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