Officials said a hurricane watch in the British Overseas Territory had ended but a tropical storm warning would remain in effect throughout the morning. Isolated tornadoes remained a possibility, they said.
Karl is expected to dump between three and five inches of rain on the island which is currently running at around seven inches above normal.
Early reports said a dozen units at a property in Shelly Bay had lost power on Friday night.
American Airlines cancelled flights from Miami and New York on Friday night but the British Airways flight from London Gatwick arrived and departed as scheduled.
According to the Bermuda Weather Service (BWS) , the system was about 50 miles southeast of the island at 6 a.m. local time on Saturday.
The Miami-based National Hurricane Centre (NHC) said the storm would now accelerate away from the island at around 17 mph and become a hurricane by Saturday night.
The BWS said tropical storm-force winds were still expected through Saturday morning, as well as showers, thunderstorms, squalls and dangerous surf.
“Conditions improve this afternoon and fair to fine conditions return tonight through Monday,” the BWS said.
Another system, Lisa, the 12th named storm of the Atlantic season, was downgraded to a tropical depression some 1,200 miles to the east of Bermuda.
Hurricane Gaston, which remained well offshore in the central Atlantic, has been the only major hurricane so far this Atlantic season with sustained winds of 120 mph.
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