S&P Affirms Bahamas’ B+ Credit Rating

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NASSAU, BAHAMAS – Standard and Poor’s, Wednesday, announced the country’s credit rating is unchanged and the economic outlook is stable – all of this hinging on the government executing its fiscal strategy.

S&P Global Ratings affirmed its ‘B+’ long-term foreign and local currency sovereign credit ratings, based on an improving economic situation driven by tourism.

In its rating, S&P says higher government revenues and lower social spending is lowering the deficit and slowing debt.

It’s a trend the S&P expects to continue over the next two years.

In response, government says it remains committed to a sustainable path to fiscal consolidation, pointing to its performance in the previous fiscal year.

A credit rating is used by sovereign wealth funds, pension funds and other investors to gauge a country’s credit worthiness.

This greatly impacts borrowing costs, which are ultimately passed on to taxpayers.