Friday, March 13, 2020

Bahamas avoids S&P ratings downgrade, outlook revised from stable to negative

Photo courtesy of Getty Images.

By Natario McKenzie

Bowe: Now is not the time to ‘beat on our chest’

NASSAU, BAHAMAS – While The Bahamas has avoided a credit downgrade from Standard & Poor’s, a well-known accountant said yesterday now is not the time to ‘beat on our chest’.

Gowon Bowe told Eyewitness News the country needs to secure a higher investment grade rating.

“Ultimately I think we have to be careful that we don’t get too high and too low because sometimes we overact to what not I would call exuberant news,” he said.

“It is reassuring to say they haven’t seen any radical negative impact because of the things we are going to have to take on with Hurricane Dorian because we had headroom to absorb some of these elements. Equally we shouldn’t be seeing that as an opportunity to beat on our chest.

“They have not increased our credit rating. They have not further decreased our rating and we should be looking to get back into a high investment grade category.”

The Ministry of Finance yesterday noted that despite the unprecedented impact of Hurricane Dorian and the resulting economic fallout, The Bahamas maintained its credit rating in the latest report by S&P Global Rating.

The ministry noted that although there was an anticipated revision to the outlook from stable to negative, the country’s BB+ sovereign credit rating was affirmed.  Read more >>