For the first time in nearly two decades, an international credit ratings agency has upgraded The Bahamas’ sovereign credit outlook, signaling renewed confidence in the country’s economic direction.
Moody’s has revised The Bahamas’ outlook from “stable” to “positive,” citing improvements in debt management, economic growth, and fiscal reform. The decision marks a milestone in the country’s recovery from a series of economic shocks, including the COVID-19 pandemic and Hurricane Dorian.
Prime Minister Philip Davis described the upgrade as a reflection of growing international trust in the government’s fiscal policies. “This is welcome news,” he said in a statement Tuesday. “It tells the world that The Bahamas is regaining its financial footing and that the work we are doing is credible and impactful.”
According to Davis, when his administration took office in September 2021, the country was facing a high debt burden and constrained public finances. He noted that the new rating reflects recognition of the government’s fiscal consolidation efforts, including a return to budget surplus and a targeted reduction of the debt-to-GDP ratio below 70% by 2028.
Moody’s credited the administration’s structural reforms aimed at strengthening revenue collection and controlling public spending. The agency also noted the country’s improved economic trajectory.
In addition to fiscal policies, Davis highlighted the government’s focus on energy reform as a major component of the nation’s recovery strategy. The initiative includes investments in renewable energy, infrastructure modernization, and measures to reduce electricity costs and power outages.
“We are undertaking the largest energy reform in our country’s history,” Davis said. “These reforms won’t happen overnight, but we are laying the foundation now so that future generations inherit a cleaner, cheaper, and more resilient energy system.”
The Prime Minister acknowledged ongoing challenges, including the high cost of living and lack of access to basic services in some communities, but reaffirmed the government’s commitment to long-term economic transformation.
“We’ve come a long way. But we still have work to do,” he said. “We will not stop until progress is felt in every home, on every island, for every Bahamian.”
