S&P Mulls Bahamas Upgrade

S&P has revised its outlook on The Commonwealth of The Bahamas’ single A rating to positive from stable. According to S&P credit analyst Olga Kalinina, the ratings reflect the Bahamas’ macroeconomic stability, prudent fiscal policies, and steady monetary stance. “The Bahamas’ political environment is stable, and its standard of living is high. Public sector external debt is low and declining, with net external assets at 8% of current account receipts in 2007,” she adds. Economic growth, is expected to pick up and stabilize at about 4% in the next three to five years, reflecting investment projects in the tourism industry. Estimated at over $10bn, committed and already-started projects should provide positive externalities to a wider economy, supporting S&P’s expectation of improving sovereign creditworthiness.