PRESS RELEASE – The Ministry of Finance acknowledges the decision of Standard and Poors to lower The Bahamas’ Credit Rating from BBB+/A-2, to BBB/A-3 and its transfer and currency convertibility assessment from A- to BBB+. During recent discussions with Standard and Poors the Credit Agency made it clear that it was changing its methodology to place greater emphasis on ‘diversification’ and growth ‘prospects’.

Given The Bahamas’ economic concentration on tourism and financial services for more than 50 years and given its limited growth prospects in the current challenging global economic environment, it seemed likely that a rating down grade would follow this change in methodology.

This notwithstanding the Government of The Bahamas remains focused on stimulating economic growth through inward direct foreign investment, increasing support for small and medium size business development, improving the domestic environment for doing business and strengthening the productivity of The Bahamas’ workforce.

The Government also remains focused on strategies to reverse the current fiscal circumstances of the Country by slowing the growth rate of our debt – to – GDP Ratio and eventually reversing the same in order to return it to more sustainable levels. We will continue to focus on these in order to create optimum opportunities for the citizens of The Bahamas to be employed, to increase their income generating capacity and pursue their business interests.

This is an excerpt from The Bahamas Government as it appeared on November 3, 2011. For updates or to read the current version of this post in its entirety, please click here.

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