NASSAU, Bahamas, CMC – The Bahamas authorities has welcomed the most recent rankings from the US-based tandard & Poor’s World Scores (S&P), ,saying ithey reflectthe ongoing restoration of credit score notion and mmarka important milestone in The Bahamas’ re-rating trajectory.
Final week, S&P upgraded its long-term international and native foreign money sovereign credit score rankings on The Bahamas to ‘BB-’ from ‘B+’, reflecting, reflecting strengthened financial efficiency, supported by the tourism and monetary sectors, coupled with sound fiscal administration.
“The stronger economic system, propelled by robust cruise tourism and large-scale funding initiatives throughout the Household Islands, and the federal government’s tax compliance efforts have helped scale back the fiscal deficit and contained the sovereign’s debt burden,” the US-based company stated.
S&P highlighted a number of key drivers behind the improve,, together with stronger financial efficiency, with gross home product (GDP) development of three.4 % in 2024 and a projected 2.1 per cent 2025, supported by revised knowledge assortment strategies from the Bahamas Nationwide Statistical Institute.
The nation additionally skilled file tourism development, with 11.2 million arrivals in 2024 and 6.3 million within the first half of 2025. Moreover,,the fiscal deficit narrowed to 1.3 % of GDP within the monetary 12 months 2023/24, returning to pre-pandemic ranges.
S&P additionally referred to a resilient coverage framework underpinned by fiscal consolidation, ongoing vitality reforms anticipated to strengthen the monetary place of Bahamas Energy and Gentle and different public entities,, and continued funding.
Furthermore, the company recognised current enhancements in debt indicators, indicating that “refinancing dangers have abated, given the federal government’s dedication to fiscal self-discipline,” and projecting that “debt is prone to fall to 66.3 per cent of GDP by the tip of 2025, from 77.8 per cent in 2020.”
Trying forward, S&P stated it expects that “GDP development prospects will stay strong,” with long-term development aligning “with that of friends on the similar stage of growth,” and that the federal government “will stay dedicated to prudent fiscal administration and include the debt burden”.
It stated that additional rankings upgrades might materialize within the quick to medium time period “if The Bahamas continues to exhibit strong development and sustained near-balanced fiscal outcomes,” in step with goals outlined within the 2025 Fiscal Technique Report.
In an announcement, the Phillip Davis authorities stated that “this rankings improve from S&P displays the continuing restoration of credit score notion and marks a major milestone in The Bahamas’ re-rating trajectory, constructing upon optimistic rankings actions from Moody’s (outlook revision to ‘Optimistic’ from ‘Secure’) and Fitch (‘BB-’ / ‘Secure’ inaugural credit standing), each of which had been printed in April”.
It additionally stated that the S&P rankings mirror the nation’s triumphant return to worldwide capital markets in June and that “it additional demonstrates the authorities’ dedication to improved market disclosure and monetary transparency”.
