Oct 2022 Financial News

Moody's downgrades The Bahamas' ratings to B1, changes outlook to stable

Oct 07, 2022

Moody's Investors Service ("Moody's") downgraded the Government of The Bahamas' long-term issuer and senior unsecured ratings to B1 from Ba3. The outlook has been changed to stable from negative.

The downgrade to B1 is driven by a higher degree of government liquidity risk. Despite an ongoing economic recovery, driven primarily by tourism activity, and a narrowing fiscal deficit, The Bahamas faces constrained funding options given elevated external borrowing costs. Tighter funding conditions over a prolonged period could undermine the sovereign's ability to meet external repayments, including on its international bonds.