Fitch Ratings on Friday upgraded Bermuda?s long-term foreign currency issuer default rating to ?AA+? from ?AA?. The outlook remains stable. The country ceiling has been upgraded to ?AAA? from ?AA+?.

?The upgrade reflects Bermuda?s credible commitment to high standards of fiscal prudence, a strong off-shore international financial center, and a proven track record of managing the economy and business environment,? said Theresa Paiz Fredel, director of Fitch Ratings? sovereign team.

Bermuda is one of the most prosperous economies in the world, with an estimated GDP per capita of $67,924 in 2005, she noted.

When Fitch originally assigned Bermuda a rating, it ranked as fourth highest among sovereigns. Today steady GDP growth combined with low population growth have resulted in Bermuda having the second highest per capita GDP among sovereigns rated by Fitch.

Fitch noted that the Island?s inflation is consistently in the low single digits and is similar to that of the US and its current account balance has been in surplus since 1991.

?Fitch expects these trends to continue over our forecast horizon.

?In addition, as the US is Bermuda?s major trading partner and source of business, the ongoing strength of the US economy and the formation of new insurance companies following the industry?s record hurricane losses in 2005 should benefit Bermuda?s economy and maintain growth in the range of 2.5 percent to 3 percent this year,? Fitch said.

The ratings agency added that the Island?s reputation as the domicile of choice for insurance and financial services companies should also provide the basis for sustainable growth going forward. However a key constraint on the Island?s ratings is the limited information about the debt of foreign-owned entities residing in Bermuda even though these liabilities are highly unlikely to affect Bermuda?s public finances or the domestic financial system, Fitch said.

Fitch also affirmed Bermuda?s long-term local currency IDR at ?AAA?, with a Stable Outlook, and the short-term IDR at ?F1+?.