Fitch Ratings has assigned an ‘AA-’ rating to Bermuda’s $50 million senior notes maturing on December 16, 2023. 

The notes have a coupon rate of 4.75%. 

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.

Sensitivities

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.