Moody's Reports Positive Outlook For The Bahamas

by Amanda Banks, Tax-News.com, London

04 October 2002

Moody's Investors Service announced earlier this week that the outlook remains positive for the Bahamas 'due to a track record of prudent economic management that should enable the country to remain a competitive provider of tourism and financial services - despite the adverse effects of the September 11 terrorist attacks'.

In its annual report on the jurisdiction, entitled 'The Bahamas: Global Credit Research' the international ratings agency observed that: 'The Bahamas' high degree of economic integration with the United States - a strength in its own right - produced an economic shock following September 11 that was especially sharp. Although the effects on the real economy seem to have bottomed out, prospects for economic growth have been subdued and favourable budgetary trends have been reversed.'

However, factors such as the jurisdiction's removal from both the FATF and the OECD blacklists, its relatively strong external position, and its stable and democratic political system all helped to ensure that the Bahamas retained the A3 foreign currency rating and positive outloook awarded to it by Moody's last September.

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