Moody’s Downgrades Bah. Rating

NASSAU, BAHAMAS – Moody’s Investor Service has downgraded the government’s long-term issuer and senior unsecured ratings to B1 from BA3.

The new rating puts a dent in the country’s creditworthiness.

But it was not all bad news as Moody’s also improved our economic outlook from negative to stable.

In fact, the country’s economic growth is pegged at seven percent this year.

This is the first stable outlook since February 2019 when The Bahamas credit rating was baa3.

Moody’s says the downgrade to B1 was driven by a higher degree of government liquidity risk.

The Free National Movement was quick to react to the new rating.

FNM Shadow Minister Kwasi Thompson released a statement saying the opposition is disappointed.

Thompson insists it’s clear the government’s excessive discretionary spending has contributed to the downgrade.