By The Hon. Philip E. Davis KC MP/ Prime Minister and Minister of Finance
For the first time in almost 20 years, an international credit ratings agency has given The Bahamas a positive outlook on our sovereign credit rating, signaling growing global confidence in the direction of our economy.
When we took office in September 2021, The Bahamas was facing some of the toughest economic conditions in living memory. Our debt burden was high, government finances were stretched thin, and the country was still reeling from the combined effects of a global pandemic, Hurricane Dorian, and years of mismanagement.
We made a commitment to the Bahamian people that we would bring stability, restore credibility, and build a stronger, fairer economy. That meant making hard decisions and pursuing real reform—not just patchwork solutions, but long-term fixes.
Today, international credit ratings agency Moody’s recognized the progress we’ve made by changing The Bahamas’ outlook from stable to positive. They’ve acknowledged that our fiscal plan is working: debt is falling, the economy is growing, and we’re on track to reduce our debt-to-GDP ratio below 70% by 2028. They’ve taken note of our return to a budget surplus and our structural reforms to strengthen revenue and control spending.
This is welcome news. It tells the world that The Bahamas is regaining its financial footing and that the work we are doing is credible and impactful.
A key part of that progress has been this administration’s decision to take on energy reform—doing the hard things that no previous administration was prepared to do.
Today’s news is a step forward, not a finish line.
I know Bahamians are still under pressure. The cost of living is too high. Too many are still looking for reliable opportunities. Some communities are still waiting for the basic services they deserve.
That is why, even while we stabilize our finances, we are taking on the next big challenge: we are undertaking the largest energy reform in our country’s history. This includes major investments in renewable energy, modernizing outdated infrastructure, and reducing the cost and unreliability of power for Bahamian families and businesses.
We know that no economy can thrive with high electricity bills and frequent blackouts. We are determined to fix this—and fix it the right way. These reforms won’t happen overnight, but we are laying the foundation now so that future generations inherit a cleaner, cheaper, and more resilient energy system.
This moment calls for balance. We must be disciplined in our finances, ambitious in our reforms, and compassionate in our leadership.
We’ve come a long way. But we still have work to do, and we will not stop until progress is felt in every home, on every island, for every Bahamian.
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