NEW YORK, May 16 (Reuters) - Moody’s Investors Service on Thursday cut Bermuda’s government bond rating to Aa3 from Aa2 and warned more cuts could be coming as the country’s economy struggles.
The outlook is now negative, Moody’s said in a statement.
“The downgrade was prompted by the steep rise in government debt and the lack of an economic recovery from the downturn at the time of the crisis,” the statement read.
But the rating agency also cited the country’s high per capita income and strong institutions as supporting the rating.
Standard & Poor’s rates Bermuda AA-minus with a negative outlook. Fitch rates the country AA with a stable outlook.