Global financial information and analytics company S&P Global has listed The Bahamas as having a level 4, moderately high risk profile in its most recent country risk assessments released at the end of April.
The S&P Global country risk assessments rank country risk on a scale of level 1 (very low risk) to level 6 (very high risk).
The Caribbean region as a whole carries an average rated risk of 5.
Comparatively, The Bahamas falls in the middle for nations in the region as Jamaica, Barbados, Dominican Republic and Grenada are listed as level 5 (high risk).
On the other hand, the Cayman Islands and Bermuda are listed at level 3 (intermediate risk).
Turks and Caicos as well as Trinidad and Tobago are listed at level 4 along with The Bahamas.
“We define ‘country risk’ as the broad range of economic, institutional, financial market and legal risks that arise from doing business with or in a specific country and can affect a non-sovereign entity’s credit quality,” notes S&P Global.
“The credit risk for every rated entity and transaction is influenced to varying degrees by these types of country-specific risks. The factors we evaluate are economic risk, institutional and governance effectiveness risk, financial system risk and payment culture/rule of law risk.”
The Bahamas’ position has not changed since the last revision to S&P Global’s country risk assessment on May 11, 2020.
The ratings agency stated it plans to publish the next global and regional sovereign outlooks in July 2021.
As of March 31, in its Global Sovereign Ratings Trends for the first quarter of 2021, credit rating agency S&P Global Ratings, a subsidiary of S&P Global, has placed The Bahamas on a negative outlook.