Bermuda tax and regulatory regime praised by rating agency

Saturday, January 10, 2004

NEW YORK, USA: Ratings agency Standard & Poor's has affirmed Bermuda's 'AA' long term and 'A-1+' short-term foreign and local currency ratings and praised the island's regulatory and taxation systems along with the government's sound economic management. 

"Bermuda benefits from many years of good economic management, based upon policies consistent with its fixed exchange rate," commented Standard & Poor's credit analyst Philippe Sachs. 

"The fixed exchange rate, favourable macroeconomic policy mix, and well-regarded tax and regulatory regimes will continue to attract the international business sector - particularly insurance - thus ensuring its continuance as the main engine of economic growth in Bermuda" he predicted. 

Meanwhile, S&P analyst Karole Dill Barkley noted the jurisdiction's strong performance in the international business sector, observing that underwriting and operating performance are "at very strong levels of profitability." 

"Success in developing foreign exchange earnings from the international business sector will further boost Bermuda's reserves, helping to maintain the credibility of its fixed-rate foreign exchange regime" she concluded.  

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