A release from the Ministry of Finance today indicates that 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.
This was in response to the decision of Standard and Poor’s 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+. The Ministry of Finance acknowledged that during recent discussions with Standard and Poor’s 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,” said the release.
Also reported was that the Bahamas Government also remains focused on strategies to reverse the current fiscal circumstances of the country by slowing the growth rate of its 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.”