BAHAMAS-Government pleased with latest S&P ratings.

NASSAU, Bahamas, CMC – The Bahamas government has welcomed the latest ratings from the US-based tandard & Poor’s Global Ratings (S&P), ,saying ithey reflectthe ongoing recovery of credit perception and mmarka significant milestone in The Bahamas’ re-rating trajectory.

Last week, S&P upgraded its long-term foreign and local currency sovereign credit ratings on The Bahamas to ‘BB-’ from ‘B+’, reflecting, reflecting strengthened economic performance, supported by the tourism and financial sectors, coupled with sound fiscal management.

“The stronger economy, propelled by strong cruise tourism and large-scale investment projects across the Family Islands, and the government’s tax compliance efforts have helped reduce the fiscal deficit and contained the sovereign’s debt burden,” the US-based agency said.

S&P highlighted several key drivers behind the upgrade,, including stronger economic performance, with gross domestic product (GDP) growth of 3.4 percent in 2024 and a projected 2.1 per cent 2025, supported by revised data collection methods from the Bahamas National Statistical Institute.

The country also experienced record tourism growth, with 11.2 million arrivals in 2024 and 6.3 million in the first half of 2025. Additionally,,the fiscal deficit narrowed to 1.3 percent of GDP in the financial year 2023/24, returning to pre-pandemic levels.

S&P also referred to a resilient policy framework underpinned by fiscal consolidation, ongoing energy reforms expected to strengthen the financial position of Bahamas Power and Light and other public entities,, and continued investment.

Moreover, the agency recognised recent improvements in debt indicators, indicating that “refinancing risks have abated, given the government’s commitment to fiscal discipline,” and projecting that “debt is likely to fall to 66.3 per cent of GDP by the end of 2025, from 77.8 per cent in 2020.”

Looking ahead, S&P said it expects that “GDP growth prospects will remain solid,” with long-term growth aligning “with that of peers at the same level of development,” and that the government “will remain committed to prudent fiscal management and contain the debt burden”.

It said that further ratings upgrades may materialize in the short to medium term “if The Bahamas continues to demonstrate solid growth and sustained near-balanced fiscal outcomes,” in line with objectives outlined in the 2025 Fiscal Strategy Report.

In a statement, the Phillip Davis government said that “this ratings upgrade from S&P reflects the ongoing recovery of credit perception and marks a significant milestone in The Bahamas’ re-rating trajectory, building upon positive ratings actions from Moody’s (outlook revision to ‘Positive’ from ‘Stable’) and Fitch (‘BB-’ / ‘Stable’ inaugural credit rating), both of which were published in April”.

It also said that the S&P ratings reflect the country’s triumphant return to international capital markets in June and that “it further demonstrates the authorities’ commitment to improved market disclosure and financial transparency”.