NASSAU, BAHAMAS — The Bahamas has received a one-notch credit rating upgrade from Standard & Poor’s (S&P), moving from ‘BB-‘ to ‘BB’ with a stable outlook. While this development is a positive step, Gowon Bowe, Group CEO of Fidelity Bank & Trust International Limited, emphasizes that the ultimate objective is to achieve investment-grade status, not merely incremental improvements. Bowe stated, ‘It is a one-notch upgrade, which is certainly to be recognized as positive and celebrated, but also to be put into context. Our objective is really to move from non-investment grade into investment grade.’ He highlighted that the true value of S&P’s action lies in the narrative of reforms required to sustain and build upon this progress. S&P’s report underscored the importance of fiscal policy, energy reform, and the fragility of the tourism sector. Bowe noted that S&P has placed significant emphasis on the reduction of the fiscal deficit, the successful refinancing of foreign currency debt at moderate interest rates, and the need for energy reforms to stabilize power costs. He also pointed out the vulnerability of the tourism sector to global economic downturns, particularly in the United States, where elevated inflation and interest rate volatility could negatively impact tourism. Additionally, Bowe stressed the importance of implementing the country’s corporate minimum top-up tax, which has been enacted but not yet enforced. He called for the government to focus on realistic fiscal targets and long-term planning, including a national development plan spanning 25 years or more. S&P’s upgrade reflects The Bahamas’ progress in reducing fiscal deficits, stabilizing its debt-to-GDP ratio, and successfully refinancing external debt. However, the agency cautioned that the country’s high reliance on tourism, vulnerability to external shocks, and challenges in the energy sector remain constraints on the rating. The government welcomed the upgrade as a recognition of its fiscal responsibility and reform agenda, reaffirming its commitment to further economic strengthening, growth diversification, and resilience improvement.