Bahamas pleased with Moody’s rating

NASSAU, Bahamas – The Government of The Bahamas said it is pleased to learn that Moody’s has affirmed the country’s A3 bond ratings, which reaffirms the credit profile of the country. 
The Government also acknowledges the rating agency’s revised outlook of the Bahamian economy from stable to negative. 
“The recent global economic and financial crisis profoundly impacted the Bahamian economy and required extraordinary levels of spending on the part of the Government to safeguard the financial system, boost economic activity and provide assistance to Bahamians badly in need of help in these trying times, this at a time when government revenue experienced precipitous declines,” a government statement said. 
“The unusually high rise in debt levels therefore was not surprising and in fact forecasted by the Government in light of the worse global economic and financial crisis since The Great Depression.  Despite this, we maintain in the circumstances a debt-to-GDP ratio that is one of the lowest in our region.” 
This notwithstanding, the Government emphasized its continuing goals to reduce the level of deficit spending, as is proposed in the 2011/2012 fiscal budget relative to the crisis period; reduce the growth rate of the debt- to-GDP ratio as again is proposed in the current budget; and eventually decrease the debt- to-GDP levels in order to reestablish the fiscal space the country enjoyed prior to the onset of the crisis. (CMC)