Moody's assigns Bahamas bonds Aaa, Ba3

Moody's Investors Service said it assigned an Aaa rating to the backed senior unsecured planned bond issuance (series A bond) by the government of the Bahamas. The bond is enhanced by a $200 million credit guarantee provided by the Inter-American Development Bank for scheduled debt service payments. The IADB's issuer rating is Aaa with a stable outlook.

“The assigned Aaa rating is based solely upon the unconditional and irrevocable guarantee of scheduled principal and interest payments provided by the IADB,” the agency said in a press release.

Separately, the Bahamas will issue an additional eurobond without guarantee (series B bond) under the same bond indenture as the bonds issued with the IADB guarantee. Moody's assigned a Ba3 rating to series B bonds in line with the Bahamas' Ba3 rating.

The outlook is negative.

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