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Bahamas: DOWNGRADE: Bahamian economy projected to contract by 21 percent

NASSAU, BAHAMAS — An American credit rating agency yesterday pushed the country’s credit rating further into junk territory as it now expects the Bahamian economy to contract by 21 percent this year.

S&P Global Ratings, formerly Standard & Poor’s, lowered the country’s credit rating one notch to BB- from BB due to weaker than expected economic and financial conditions as a result of COVID-19.

“The country’s fiscal reform measures have evolved slowly, and we expect the pandemic will hinder meaningful public finance reform, while large fiscal deficits and a high debt burden increase funding pressures,” S&P said in a statement.

The credit rating agency had lowered this nation’s credit rating to junk status in April, with its latest action pushing the country’s credit rating down further.

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