Moody’s downgrades Bahamas

Moody’s announced on Friday that it had downgraded the sovereign debt of The Bahamas one notch to Baa1. The outlook remains negative, but the new rating is still within investment grade.

Moody’s expects the post-crisis recovery in The Bahamas to remain fragile, citing limited growth prospects and high unemployment in their decision. While Moody’s considers the governmental fiscal stimulus package to have been ineffective thus far, The Bahamas government has pledged to unveil a strategy to address the fiscal imbalance in its mid-term budget.