From:TheBahamasWeekly.com
Bahamas Ministry of Finance Comments on Moody’s Rating Action
By Bahamas Ministry of Finance
Sep 3, 2014 - 12:23:37 PM
On September 2nd Moody’s investor service lowered The
Bahamas Government’ credit rating by one notch to Baa2, and issued a stable outlook
for the credit assessment, premised on the strength of a very credible fiscal
reform plan and a stronger forecast for economic growth. It must be stressed
that The Bahamas Government's credit rating remains at investment grade.
Moody’s notes that the
rationale for the ratings change is the combination of factors that have led to
deterioration of the Government's financial position and increased debt since
2007. The ratings agency rightly
expresses confidence that the current program of reforms
to boost revenues, and to control expenditure and increase the efficiency of
spending will yield positive results.
These reforms are indeed
expected to have the intended outcome of reducing the deficit and supporting a
"gradual reduction" in the Government's debt burden over the coming
years. As Moody's expectations
underscore, on this course of action the Bahamian economy should strengthen,
despite worries to the contrary in some quarters about the merits of the fiscal
plan.
The Government of The
Bahamas must persevere with these reforms.
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