S&P rates Bahamas notes AAA

S&P said it preliminarily rated the Bahamas’ planned series A dollar-denominated bond AAA and the planned series B notes B+.

“The issue-level rating is equalized with the long-term foreign currency issuer credit rating on the Inter-American Development Bank (IDB) because the IDB has offered a timely, unconditional, and irrevocable guarantee of up to $200 million on the bond, which will be for the benefit of the series A noteholders,” S&P said in a press release.

“The series B notes may benefit from the IDB guarantee only to the extent that a residual portion of the maximum guaranteed notes amount remains available after applicable payments of principal and interest on the series A notes have been paid or provided for in accordance with the terms of the IDB guarantee. Therefore, the rating on these notes is equalized with the long-term foreign currency sovereign credit rating on the Bahamas,” the agency said.

The outlook is stable.

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