NASSAU| Prime Minister and Minister of Finance, the Hon. Philip Davis has reaffirmed his administration’s commitment to strengthening The Bahamas’ financial standing by setting a clear objective: securing an investment-grade credit rating within the next three years.
This announcement, made during the recent 2024/2025 Mid-Year Budget Debate Statement presented by the Prime Minister, follows recent credit assessments from Moody’s and Standard & Poor’s (S&P), which have given The Bahamas a stable outlook, citing factors such as a strong and stable economy that supports positive fiscal results and slows debt growth, a high GDP per capita compared to regional peers, and policy predictability and a stable political system.
To support this ambitious goal, the Davis Administration has engaged Fitch Ratings as a third credit rating agency, alongside Moody’s and S&P. Achieving investment-grade status requires a minimum rating of Baa3 from Moody’s and BBB — from both S&P and Fitch — a milestone that would signal strong creditworthiness and low investment risk to global investors.
Prime Minister Davis said the administration has already taken significant steps — “comprehensive reforms” — to improve The Bahamas’ credit profile, including reducing the deficit and debt levels, launching major, nationwide energy reforms, implementing climate risk and disaster protection measures, introducing tax reforms to diversify revenue sources and align with international best practices, securing lower-cost debt financing through credit-enhanced transactions, enhancing the Bahamian Dollar (BSD) market to improve financial liquidity, and improving the collection of economic data for better policy decisions.
Additionally, the government is preparing to demonstrate its ability to access international markets under normal conditions by tabling a borrowing resolution for future entry into global capital markets.
“These efforts reinforce our administration’s commitment to sound financial management and long-term economic stability,” said Prime Minister Philip Davis. “We are determined to put The Bahamas on a path to achieving an investment-grade credit rating, which will enhance investor confidence, reduce borrowing costs, and create a stronger economic future for all Bahamians.”
