Bahamas rating downgraded by S&P

International credit rating agency Standard and Poors (S&P) has lowered the crediting rating of The Bahamas.

This is the second time in two years.

The Bahamas’ credit rating was lowered from BBB+/A-2, to BBB/A-3 and its transfer and currency convertibility assessment from A- to BBB+.

S&P indicated that The Bahamas’ dependence on tourism (which accounts for over 50 percent of gross domestic product), particularly from the United States, was a major factor in the downgrade.

The Bahamian revealed that it was not surprised by the downgrade since the credit agency has changed its methodology to place greater emphasis on diversification and growth prospects.

“Given The Bahamas’ economic concentration on tourism and financial services for more than 50 years and given its limited growth prospects in the current challenging global economic environment, it seemed likely that a rating down grade would follow this change in methodology,” the Ministry of Finance said in a statement.

“…The government of The Bahamas remains focused on stimulating economic growth through inward direct foreign investment, increasing support for small and medium size business development, improving the domestic environment for doing business and strengthening the productivity of The Bahamas’ workforce.”