Fitch Rates Bermuda’s $50M 2023 Bonds ‘AA-’

December 18, 2013

Fitch Ratings has assigned an ‘AA-’ rating to Bermuda’s BMD $50 million senior notes maturing Dec. 16, 2023. The notes have a coupon rate of 4.75%.

A statement from the ratings agency said, “The net proceeds from the issuance of the notes will be deposited in the Sinking Fund established in 1993 as a separate legal entity for the repayment of government borrowings.

“The rating is in line with Bermuda’s long-term local currency Issuer Default Rating (IDR) of ‘AA-’ with a Negative Outlook.

“The rating would be sensitive to any changes in Bermuda’s long-term local currency IDR. On June 7, 2013, Fitch downgraded Bermuda’s long-term local currency IDR to ‘AA-’ from ‘AA+’ and revised the Outlook to Negative from Stable.”

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  1. Yahoo says:

    Wow, Fitch has no clue…

  2. forwhatitsworth says:

    Agreed. IMHO Fitch are wrong. Lending Bermuda dollars to the Government for ten years is a very risky investment as the Bermuda dollar will almost certainly be significantly devalued in that time. Bermuda is heading for bankruptcy at an alarming rate, and the politicians have all got their heads in the sand.