Credit rating agency Standard and Poor’s (S&P) has cut the Bahamas’ long-term
sovereign credit rating by one notch to BBB+, or three notches into investment-grade
territory.
The report noted that the ratings outlook is stable as a result
of fiscal measures implemented by the government to mitigate increases in debt.
S&P further observed that the Bahamas had been vulnerable to the onset of the economic crisis due to its
dependence on taxes on international trade and transactions, which account for
more than 50% of tax revenue.
The report accredited the credit rating downgrade to falling revenues, expected
to deteriorate further during the current fiscal year, having fallen 9.2% in
the fiscal year ending June 2009.
"The downgrade reflects the Bahamas' weakened fiscal profile. Its debt
and deficits have increased. In addition, following three years of economic
contraction, the Bahamas' growth prospects beginning in 2011 are modest,” the report said.
According to the report, state debt has increased significantly to 30% of
GDP, from 22% of GDP in 2008, and is expected to increase to between 35% and 39%
by 2012.
The agency, however, did project that the economy would recover in 2011, with
growth of around 2% of GDP, following a contraction of 0.5% of GDP in 2010,
and 4% of GDP in 2009. In particular, S&P observed that
the territory’s economy would be bolstered by tourism from the United
States.
Lowtax Network Portal: 'Low-tax' business and investment in the top
50 jurisdictions covered in exceptional detail.
Tax News: Global tax news, continuously updated through the day. Investors
Offshore: The independent offshore and alternative investment guide
for expatriates and the globally aware investor. Law & Tax News: Daily
news and background data on tax and legal developments for international business. Offshore-e-com: A topical
guide to offshore e-commerce focused on tax and regulation. Lowtax Library: One of
the web's largest and most authoritative business and investment information
sources. US Tax Network: The resource
for free online US taxation information, covering: corporate tax, individual
tax, international tax, expatriates, sales and e-commerce tax, investment
tax. Personal Business Tax
Guide: Providing essential tax news and information on business for
contractors, entrepreneurs, professionals, small businesses, artists, sportspersons
and entertainers. Offshore
Trusts Guide: OTG publishes news, features and newsletters on the
use of offshore trust structures. TreatyPro:
The online tax treaty resource.
Lowtax Library
One of the web's largest and most authoritative business and investment
information sources. Alongside topical, daily news on worldwide
tax developments, you can receive weekly newswires or
access up-to-date intelligence
reports on a range of legal, tax and investment subjects.
Our 16 constantly updated intelligence
reports cover every important aspect of 'offshore' and international
tax-planning in depth, including banking secrecy, the EU's savings tax
directive, offshore funds, e-commerce, offshore gaming and transfer
pricing. Reports are available for immediate downloading or as subscription
services with news pages.
Advertising
& Marketing
With over 50,000 qualified readers every month our web-sites offer
a number of cost effective, targeted advertising, sponsorship and marketing
opportunities:
- Display advertising - from 'skyscrapers' to 'buttons'
- Content/article submission and sponsorship
- Opt-in email marketing
- On-line Services Directory listings
Click
here to learn more or contact Charles Bell on +44 (0)1424 205 425
or at charles@bsi-media.com
and he will put you in touch with your regional rep.
News & Content
Solutions
Could your corporate web-site or newsletter benefit from incorporating
regularly updated news and content tailored to serve your clients' interests?
We can provide a variety of maintenance-free news and content solutions
that can be seamlessly integrated and dynamically delivered:
Click here
to learn more or contact Charles Bell on +44 (0)1424 205 425 or at charles@bsi-media.com
and he will put you in touch with your regional rep.
Lowtax Network Portal
Front Page
Tax Jurisdictions
Featured Content
Comments
Read our Posting GuidelinesBe the first to comment on this story...
Write a comment