NASSAU, BAHAMAS — Prime Minister Philip Davis has welcomed Standard & Poor’s decision to affirm The Bahamas’ B+ long-term credit rating with a stable outlook while noting that the government is aware there is still much work ahead.
In a statement, Davis said: “I welcome the latest report from Standard & Poor’s (S&P), which acknowledges our country’s robust recovery, the reduction in the fiscal deficit, the containment of our debt burden, and the government’s new energy reforms. These factors supported S&P’s decision to affirm our credit ratings and designate the outlook as stable. This report comes three years into our term, a time to honor the Bahamian people for how far we’ve come together while recognizing that much work remains.”
Last week, S&P affirmed The Bahamas’ B+ long-term ratings with a stable outlook, noting that it expects the economy to slow to 1.8 percent in 2024 before returning to trend growth. According to S&P, the country’s recovery over the past two years has helped reduce the fiscal deficit and manage the sovereign debt burden. “We expect growth to slow this year as the U.S., our primary market, heads for a soft landing, though successful execution of new energy policy reforms could support medium-term growth. The stable outlook indicates that a steady economy will support positive fiscal results and slow the growth of debt,” S&P stated.
S&P also reaffirmed its ‘B’ short-term sovereign credit ratings for The Bahamas. The agency noted that the stable outlook reflects its view that a stable economy, combined with fiscal consolidation efforts, will limit the government’s debt burden.
Davis remarked: “When we entered office, the country was in crisis. The mishandling of the pandemic meant our health and economic outcomes lagged behind those of other nations in the region. Our national debt increased by $2.4 billion in just two years. Bahamians feared a major VAT increase and potential currency devaluation. Meanwhile, businesses suffered from misguided lockdowns, our hospitals were in dire straits, and schools were closed and in disrepair. Many Bahamians were out of work and needed immediate support and new opportunities.”
He added: “We know there’s much more work ahead. A global inflation crisis has hit our families hard. There are no easy answers or quick fixes, so we are tackling our country’s toughest challenges.”
Davis emphasized that his administration is introducing the country’s first nationwide energy reforms, upgrading the electricity grid, and bringing solar power and natural gas to the islands. “Comprehensive reform of this sector is essential for reducing prices and ensuring reliable electricity—critical for supporting Bahamian families and businesses and fostering the dynamic, inclusive economic growth we know is possible.”
He also noted that his administration is challenging the Grand Bahama Port Authority to uphold the terms of the Hawksbill Creek Agreement. “When Grand Bahamians have a true partner in their economic development, the sky’s the limit for the Magic City. We are building and strengthening partnerships globally—to enhance our borders, advocate for policies that benefit small island states, promote opportunities for Bahamian entrepreneurs, athletes, students, and healthcare professionals, fight for fair climate finance, and ensure our country’s excellence is recognized worldwide.”
“Problems that took decades to develop don’t vanish overnight. Tackling significant challenges and confronting the status quo requires a commitment to push forward where others have chosen to give up. Some of our policies and investments will yield quick dividends; others will take time. But the important thing is that we are no longer kicking the can down the road—our country is finally moving in the right direction,” Davis concluded.
Opposition Leader Michael Pintard, commenting on the S&P report, noted: “The Opposition had the opportunity to meet with Standard & Poor’s when they were in town recently, and I don’t believe it is accurate to claim that things have significantly improved under this administration. Various rating agencies have commented on the fact that our economy has returned to low growth, similar to the period before Hurricane Dorian, with expected growth rates around 1.1 percent. S&P has it at approximately 1.8 percent. This is not something any administration should be patting itself on the back for.”
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