business@tribunemedia.net
THURSDAY, APRIL 10, 2025
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BAHAMAS RANKS BELOW ‘INVESTMENT GRADE’ WITH THIRD CREDIT RATING FIRM t 'JUDI QMBDFT OBUJPO BU ATQFDVMBUJWF ## SBOLJOH t .PSF UBY TQFOEJOH NFBTVSFT UP IJU EFCU UBSHFU t 8BSOT #VEHFU TVSQMVT UP CF IBMG (PW UT GPSFDBTU By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas has now failed to achieve ‘investment grade’ status with any of the three major credit rating agencies after Fitch yesterday assigned a ‘BB-’ long-term ranking to this nation. GOWON BOWE Asserting that “additional measures” will be required from the Government to hit “the ambitious but achievable” 50 percent debt-toGDP target ratio by 2030-2031, Fitch’s ‘BB-’ rating places The Bahamas in “speculative” territory that is below the agency’s ‘investment grade’ credit ratings of ‘BBB’ and up. Its ‘rating definitions’ describe the ‘BB’ category as signalling that a borrower has “an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time”. However, the likes of The Bahamas still have sufficient “business or financial flexibility that supports the servicing of financial commitments”. Gowon Bowe, Fidelity Bank (Bahamas) chief executive, told Tribune Business that while Fitch has rated The Bahamas “one notch higher” than both Moody’s and Standard & Poor’s (S&P) it is no surprise that it has joined the latter two in placing this nation at “junk” or “speculative” status. A non-investment grade rating means The Bahamas is perceived by the agencies, as well as investors and the capital markets, as a more risky borrower with greater prospects
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MSC’s GB Shipyard buy-in now revealed t 4IJQQJOH HJBOU JO +7 XJUI $BSOJWBM 3PZBM $BSJCCFBO MEDITERRANEAN Shipping Company (MSC) is t %FBM BXBJUJOH SFHVMBUPSZ “joining” the Grand Bahama BOE HPWFSONFOU BQQSPWBMT Shipyard via a joint venture with the latter’s two existing cruise line shareholders, it t $PNFT BIFBE PG N was confirmed last night. Dave Skentelbery, the EPDLT BSSJWBM JO 'SFFQPSU Shipyard’s chief executive, By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
in a statement to Tribune Business confirmed that the global global cargo shipping giant - which also owns a fast-expanding cruise business - is set to buy-in to the Grand Bahama-based operation once all necessary government and regulatory approvals are received. “Subject to pending regulatory and government approvals, we are pleased to have MSC Cruises join the Grand Bahama Shipyard through a joint venture agreement with Carnival Corporation and Royal
GRAND BAHAMA SHIPYARD
Caribbean Group,” he said. “We look forward to working with the Government on a path way forward.” The Shipyard’s statement came in response to Tribune Business inquiries after this newspaper learned MSC was in negotiations to buy into the Grand Bahama Shipyard as the latter prepares to bring its $600m investment in two new docks to fruition. Multiple well-placed contacts, speaking on condition of anonymity, confirmed that the global cargo shipping giant - which generated $36.2bn in profits in 2022 was looking to invest in the Grand Bahama-based facility although they gave different explanations for how any deal would be structured. Tribune Business was initially informed that MSC was in talks to acquire the 20 percent equity ownership interest that the Grand Bahama Port
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APPEAL OVERTURNS PI RESORT’S SITE APPROVAL By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net PLANS to develop a new resort at the former Paradise Harbour Club location have suffered a setback after the project’s original site plan approval was overturned on appeal. The Subdivision and Development Appeal Board, in a March 31, 2025, decision rejected the Town Planning Committee’s permission for the HotelConsult project to proceed over a combination of procedural missteps and
the developer’s failure to produce any documents showing it has “authorisation” to construct the development’s parking lot on land leased from Atlantis. The Board, chaired by attorney Dawson Malone, granted the appeal by One Ocean Condominium Association, the body that represents residents in the high-rise complex adjacent to the proposed hotel’s site, and sent the project back for reconsideration by the Town Planning Committee. “The decision pertained to a site plan approval for
the proposed renovation and expansion of the Paradise Island Yacht Club [Paradise Harbour Club] located off Paradise Island Drive, New Providence,” the Appeal Board, noting that the case involved a site visit and numerous preliminary hearings before the full appeal was heard on February 4, 2025. “This Board has adopted as a matter of law two positions on prior matters, which have not been overturned to our knowledge, and both appear to be present and prevailing at this time which militate
against the upholding of the approval.” The Appeal Board reiterated that developers cannot obtain full site plan approval, as HotelConsult received from the Town Planning Committee, without first getting preliminary site approval. The latter, a requirement imposed by the Planning and Subdivision Act, was not obtained for the Paradise Island resort project, meaning that the full site plan approval granted to the developer was procedurally flawed.
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PM ‘WON’T SUGARCOAT’ PERIL ON TRUMP TARIFFS By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Prime Minister last night said he “won’t sugarcoat the dangers we are facing” from increased “inflationary pressures”, a tourism and economic contraction, and reduced exports as a result of US tariff policies. Philip Davis KC, acknowledging the peril The Bahamas faces due to its vulnerability to external shocks, conceded that the country is exposed to “new and very significant challenges” as a result of the global uncertainty and stock market turmoil unleashed by Donald Trump’s move to completely shred
PHILIP DAVIS KC long-standing international and commerce norms. While the upheaval seemingly forced the US president to pause the imposition of tariffs on most countries, China excepted, for a period of 90 days until
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Power purchase deal signed for solar in New Providence By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net THE Davis administration has signed a power purchase agreement (PPA) with Eco Energy Bahamas for solar power generation in New Providence. Prime Minister Philip Davis said the partnership, which will see a 20-megawatt solar facility constructed in Coral
Harbour, demonstrates his administration’s “unwavering commitment” to incorporating solar power into the energy mix. He said the project will be New Providence’s first significant solar instillation and will set the standard for future solar generation projects in the country. “Our partnership with Eco Energy Bahamas Ltd. demonstrates our unwavering commitment to solar
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