Rolle: Investments will not be Immediately Impacted by a Downgrade13 Jul 2017

In the event of another downgrade to The Bahamas’ credit rating, Central Bank Governor John Rolle explained that investment opportunities in the pipeline or coming on-board would not be immediately impacted.

Rolle’s comments came on the heels of an announcement by international ratings agency Moody’s that it will review The Bahamas’ Baa3 credit rating for downgrade.

Speaking with Guardian Business yesterday, Rolle pointed out the possible implications for the public and private sectors if the rating is lowered.

“The government is most on the receiving end, because the credit rating filters into the government’s borrowing cost,” said Rolle.

Minister of Finance Peter Turnquest told Guardian Business that another downgrade could make it “more difficult” for the new government to carry out its campaign promises, including its slate of proposed tax relief.

Rolle went on to explain the impact of a downgrade on investments in the private sector, noting that opportunities would not “suddenly vanish” in the wake of a change in the credit rating.

“For the private sector, what continues to matter is whether the economy is evolving satisfactorily, independently of the government’s credit rating,” he said.

Read More here: The Nassau Guardian