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 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.”