S&P International Rankings has upgraded The Bahamas’ long-term international and native forex sovereign credit score rankings to ‘BB-’ from ‘B+’, citing stronger financial efficiency and regular fiscal administration.
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The outlook stays Steady, reflecting confidence within the nation’s means to take care of latest financial positive factors.
The September 26 score motion comes as The Bahamas posts stronger-than-expected progress pushed by strong tourism and elevated funding throughout the Household Islands. “The stronger financial system, propelled by sturdy cruise tourism and large-scale funding tasks, and the federal government’s tax compliance efforts have helped cut back the fiscal deficit and contained the sovereign’s debt burden,” S&P mentioned.
The company credited a number of key elements for the improve:
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Stronger financial efficiency, with GDP increasing 3.4% in 2024 and projected to develop 2.1% in 2025, aided by improved knowledge assortment from the Bahamas Nationwide Statistical Institute.
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Report tourism arrivals, reaching 11.2 million guests in 2024 and 6.3 million within the first half of 2025.
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Fiscal enhancements, because the deficit narrowed to 1.3% of GDP in FY 2023/24, returning to pre-pandemic ranges.
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Vitality sector reforms aimed toward strengthening the funds of Bahamas Energy and Gentle and different public entities.
S&P additionally highlighted the federal government’s dedication to fiscal self-discipline, noting that refinancing dangers have eased and projecting public debt to fall to 66.3% of GDP by the top of 2025, down from 77.8% in 2020.
Wanting forward, the company expects GDP progress to stay stable and align with friends of comparable improvement ranges, offered the federal government maintains prudent fiscal insurance policies. Additional upgrades might observe if The Bahamas sustains balanced budgets and robust progress, in step with targets set within the 2025 Fiscal Technique Report.
The improve builds on a sequence of latest constructive rankings developments, together with Moody’s revision of The Bahamas’ outlook to Constructive from Steady and Fitch’s inaugural BB- / Steady score earlier this 12 months. It additionally follows the nation’s profitable return to worldwide capital markets in June, signaling bettering investor confidence and strengthened credit score notion.
