The Bahamas' debt rating was downgraded last week by Standard & Poor's (S&P), which said that the phased opening of Baha Mar will limit financial
benefits, while the island nation will be weighted by spending on Hurricane
Matthew repairs.
S&P lowered the Bahamas' credit rating one notch to BB+/B,
pulling the commonwealth's ratings into non-investment grade, or "junk"
territory.
The Bahamas' gross domestic product (GDP) will be
little-changed this year, and will grow about 1% in both 2017 and 2018, S&P
said, but those benefits will be largely offset by the $600 million in damage
the Bahamas incurred from Hurricane Matthew last October.
While the Bahamas' long-delayed Baha Mar is expected to partially
open in the second quarter of 2017, the resort will open in phases and won't be
completed until the end of the year.
"We believe that it will take time before the resort is
able to operate at full capacity," S&P wrote.
Hong Kong-based Chow Tai Fook Enterprises confirmed earlier
this month that it agreed to acquire Baha Mar and said the project's first
phase will open as soon as April.