S&P Lowers Bahamas’ Outlook

S&P has revised the Bahamas’ long-term ratings outlook to stable from positive, on potential contagion from a US slowdown. “The revision reflects Standard & Poor’s reassessment of the Bahamas’ growth and investment prospects during the next one to two years, given the country’s close tourism, financial, and trade links to the slowing US economy,” says the agency. S&P chopped its real GDP growth forecast on the Bahamas to 3.1% from 4.4% for 2007 and to 3.0% from 4.0% for 2008, based on below-par performance of the tourism sector, and a shrinking in the construction sector.