Bahamas’ ‘Credibility’ Hangs on Explanation of Budget Projection Revisions

S&P: Rating could hit ‘junk’ statusThe Bahamas’ fiscal “credibility” depends on it providing a convincing explanation for why the 2016-2017 fiscal estimates changed so drastically in just two months, the Chamber of Commerce’s chairman said yesterday.

Gowon Bowe told Tribune Business that while the original $100 million deficit projection had been long blown by Hurricane Matthew, international credit rating agencies and investors would want to understand why the estimate had now had increased to $500 million when March’s mid-year Budget pegged it at $350 million.

“When they come, they won’t be distinguishing between one administration and the next,” he told Tribune Business of Moody’s and Standard & Poor’s (S&P) summer visits to the Bahamas. “It will be incumbent on this government to develop policies and initiatives to meet these new Budget projections. […]