NASSAU, Bahamas (CMC) – The Bahamas Government says it welcomes the decision by the US-based Moody’s Investor Services to uphold the investment grade credit rating and the stable rating outlook given to the country.

The government said that Moody’s “expressed confidence that The Bahamas is on course to see a reduction in its debt burden over the near and medium-term.

“To the credit of the Government’s fiscal reform process and the improving economic outlook, the ratings agency’s assessment keeps the Bahamas appropriately paced amongst its international peers, notwithstanding the Baha Mar construction delay,” the statement said.

Last month, The Perry Christie government said  the decision by another US-based rating agency, Standard & Poor’s to lower the country’s foreign and local currency sovereign credit ratings to ‘BBB-/A-3’ from ‘BBB/A-2’ was not unexpected.

The government said given the recent placement of The Bahamas on credit watch, the rating by Standard & Poor’s “does not adequately reflect the improved economic and fiscal outlook for the Bahamian economy”.

Standard & Poor’s had said that the short term economic shock pertains to the Baha Mar bankruptcy filing and subsequent ongoing legal disputes.

The Government is now awaiting a court ruling on September 4 on its request for the appointment of a provisional liquidator regarding the theUS$3.5 billion dollar project.

Regarding the ratings by Moody’s, the government said it is worth emphasizing, again, “that the Government is committed to securing a timely resolution and completion of the Baha Mar project, in a manner that would serve the best interest of the country.

“The Ministry of Finance acknowledges that a deepening of the reforms, including persistence in expenditure discipline would reduce the ongoing vulnerabilities highlighted by Moody’s. The Government, while being patient, will redouble its efforts to advance initiatives that boost private sector confidence and stimulate employment,” it added.