Video: S&P On Lowering Bermuda Bank Ratings

In a CreditMatters video, Standard & Poor’s Director Robert Hansen explains what prompted the ratings agency to revise their banking industry country risk assessment on Bermuda.

Topics include the economy, unemployment, the real estate market, nonperforming loans, and the potential credit rating implications on specific banks.

Last week Standard & Poor’s lowered the long-term issuer credit ratings on HSBC Bermuda and Bank of Butterfield, citing a “persistent weakness in the economy.”

S&P said, “Bermuda’s economy has weakened in recent years, partly as a result of the departure of a few thousand expatriates, increased unemployment levels, and a sharp slowdown in the real estate market.

“Moreover, we assess the trend for economic risks to be negative largely based on our projections for unemployment and economic growth.”

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