S&P changes Bahamas view to negative

S&P said it revised the outlook for the Bahamas to negative from stable, but affirmed its BB+ long-term sovereign rating.

“The negative outlook reflects our view that the government's debt profile has continued to weaken due to persistent fiscal deficits, leading to additional borrowing,” said S&P in a press release. The government’s revised borrowing plans include nearly $1.5 billion in added debt over six years to meet rebuilding and related costs for the damage done by Hurricane Dorian.

Also, the Covid-19 outbreak could hurt tourism, which could hurt the economy and reduce government revenue.

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