KBRA Releases New Update on Bermuda

NEW YORK–(BUSINESS WIRE)–Bermuda was removed from the European Union’s (EU) blacklist for tax
havens on May 17. This update is a follow-up to a Kroll Bond Rating
Agency (KBRA) research
note released on March 19, shortly after Bermuda was placed on
the list.

The EU has noted that Bermuda adopted the requisite amendments to its
Economic Substance Regulation too late to be considered for the EU’s
Economic and Financial Affairs Council meeting held on March 12, as
previously noted on KBRA’s earlier statement, prompting its inclusion on
the blacklist. The EU has also noted that further clarification of
policy needs to be received concerning economic substance regarding
collective investment funds, and this is expected by end-December 2019.

KBRA has maintained Bermuda’s rating of A+/K1+ (Stable Outlook)
throughout the blacklist period, which has now been largely resolved to
Bermuda’s benefit. The speedy removal of Bermuda from the list and the
apparent modest associated financial implications have had a limited
impact on KBRA’s credit analysis.

KBRA will continue to monitor the credit ratings of Bermuda, including
progress on the unresolved issue relating to collective investment funds.

To access the full report on KBRA’s sovereign ratings of Bermuda, click here.

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
designated as a designated rating organization by the Ontario Securities
Commission for issuers of asset-backed securities to file a short form
prospectus or shelf prospectus. KBRA is also recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.

Contacts

Analytical Contacts:

Joan Feldbaum-Vidra, Managing Director
(646) 731-2362
jfeldbaumvidra@kbra.com

Alan Madden, Director
+353 (1) 669-2683
amadden@kbra.com

Van Hesser, Senior Managing Director
(646) 731-2305
vhesser@kbra.com