Standard & Poor's (S&P) rating agency announced yesterday the assignation of its single-A/A-1 counterparty ratings to the Bank of Bermuda.

The rating agency said the Bank's strength is providing services to offshore entities and managers of alternative investments, which is considered a difficult niche.

"We expect that the Bank of Bermuda will maintain it's consistent financial performance and strong balance sheet, aided by its proven ability to adapt and its diverse business and client mix. The highly competitive nature of the activities in which it specialises, however, will continue to be a restraining influence," said credit analyst Roger Taillon.

S&P also said the Bank has to maintain a modern technological platform and retain high-quality employees, making efficiency a challenge in the light of decreasing fees and interest rates.

"Efficiency levels will improve as the bank aims to restore previous year's levels, which were considered appropriate for the service-orientated business," said S&P.

S&P noted that the Bank of Bermuda was a financial services group, operating with a global network in 15 countries in America, Europe and Asia, offering trust, fund, custody, credit and retail services to corporate and high net worth individuals.