Moody’s Issues Report On Bermuda

Moody’s Investors Service has issued its annual report on on Bermuda, reaffirming its “Aa1 rating for foreign currency country ceiling and its Aaa domestic debt credit rating.”

The ratings, said Moody’s, “are based on its strong economy, high per capita income, and prudent financial management, with low debt.” Moody’s analyst Steven A. Hess stated that the ratings are supported “by the colony’s ability to adapt to changing external conditions, creating confidence that it can maintain its robust economy, as demonstrated by the island’s transformation into a premier off-shore business center as its traditional tourism sector declined.”

The report noted the 70 percent increase in company registrations in the last decade and the leading position occupied by “insurance, trust and pension funds, investment management, banking, and shipping services.”

“Bermuda is ranked the world leader in captive insurance companies and has one of the largest re-insurance markets in the world,” Hess stated.

Moody’s noted Bermuda’s strong reliance on European and U.S. financial markets, and proposed legislation being considered in Congress concerning the tax status of off shore insurers, but found no cause for alarm.