Moody's cuts Bermuda bank

Moody's Investors Service said it downgraded the ratings of Bermuda Commercial Bank Ltd.

The agency lowered the long-term deposits to Ba2 from Baa3, the short-term obligations to Not Prime from Prime-3, and the standalone bank financial strength and baseline credit assessment to D/ba2 from D+/baa3. The outlook is now stable.

These rating actions conclude the review for downgrade that commenced on May 30.

Moody's said the downgrade reflects the increased risk that the bank has taken in its asset base. In particular, the bank has built, in a fairly rapid manner, a significant concentration in a portfolio of securities with higher risk than its traditional investments.

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