Standard & Poor’s Ratings Services revealed today that it has affirmed its ‘BBB+’ long-term and ‘A-2’ short-term foreign-and local-currency sovereign credit ratings on The Commonwealth of The
Bahamas. The transfer and convertibility assessment is unchanged at ‘A-‘. The outlook remains stable.
*”The ratings on The Bahamas reflect its track record of political and macroeconomic stability and somewhat higher debt levels that are now near the ‘BBB’ median, though with a favourable debt composition,”* says Standard & Poor’s credit analyst Lisa Schineller.
Ms. Schineller further explained that the stable outlook reflects expectations that the government will gradually reduce its fiscal deficit and will maintain a generally stable external financing profile.
The [report](http://www.standardandpoors.com/prot/ratings/articles/en/us/?assetID=1245303886678) concluded that the ratings could come under pressure if The Bahamas’s fiscal deterioration persists and the economic base erodes more severely. *“Conversely, we could raise the ratings if the government takes a more proactive policy response to reduce debt levels or if the Commonwealth’s economic prospects strengthen.”*