Moody's lifts Bahamas view to stable

Moody's Investors Service said it changed the outlook to stable from negative on the government of the Bahamas and affirmed its issuer and senior unsecured ratings at Baa3.

The country's long-term foreign-currency bond ceiling is unchanged at Baa1. Its long-term foreign-currency bank deposit ceiling is unchanged at Baa3. The short-term foreign-currency bond and bank deposit ceilings are unchanged at P-2 and P-3, respectively. The long-term local currency country risk ceilings are unchanged at A2.

The outlook revision reflects a view that the Bahamas has made important progress in strengthening its fiscal policy framework and transparency through the introduction of fiscal rules and more frequent and in-depth reporting of the fiscal accounts, Moody's said.

The agency also said it considers that continued fiscal consolidation will support the stabilization of government debt metrics.

The ratings reflect that despite increased government debt ratios in recent years, these indicators are in line with those of Baa-rated peers, Moody's said.

The country's credit profile is constrained by its growth potential, the agency said, but high wealth levels enhance the economy's shock absorption capabilities.

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