By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

CONCERNS over potential credit downgrades will become "a thing of the past" once this nation can realise real economic growth, a top private sector executive said yesterday, noting that commitments to improve the ease of business and transparency in government must materialise.

Edison Sumner, pictured, Bahamas Chamber of Commerce and Employers Confederation (BCCEC) chief executive told Tribune Business: "We shouldn't just be looking at upgrades and downgrades. One of the ways we can ensure we aren't susceptible to any further downgrades is to continue to grow the economy. We have to improve the ease of doing business as well as transparency and accountability in government.

"Once we demonstrate that we can put measures in place and show we can grow the economy then any sort of list or downgrade will become a thing of the past."

Mr Sumner said government must live up to its obligations, improve the ease of doing business, reduce the cost of energy and look at our tax measures.

"The agencies are looking to see whether the government is living up to its commitments to put these things in place," he said.

"Government must demonstrate that the targets outlined in the budget are going to happen. If we fail to hit our targets it gives the ratings agencies reason for further reviews and downgrades."

Moody's in an updated credit opinion last week said strengthening in The Bahamas' tourism sector and continued foreign direct investment projects will help sustain growth in the range of 1.5 to two percent over 2018-2019.

The credit ratings agency maintained the country's Baa3 credit rating with a negative outlook.

This outlook, it said, "reflects potential downside risks to the fiscal consolidation process posed by weaker-than-expected growth, exposure to climate-related shocks in the form of hurricanes, and implementation risks associated with measures to rein in expenditure growth and increase revenue intake". Moody's' warned that absent successful fiscal consolidation, The Bahamas' fiscal and credit profile would likely weaken.