Paloma batters region as it barrels toward Cuba

Hurricane Paloma pounded the British Caribbean territory of the Cayman Islands after strengthening into a dangerously powerful storm, posing a serious threat to storm-battered Cuba.

Businesses, schools and offices closed down in the Caymans, a major financial center, while residents shuttered homes and visitors tried to flee as the late-season storm hurtled northward.

Paloma gathered power menacingly fast as it neared Grand Cayman Island and it became a major hurricane -- Category 3 on the five-step scale of storm intensity -- with top sustained winds of 115 mph, the U.S. National Hurricane Center said.

Hurricane Katrina was a Category 3 when it came ashore near New Orleans in 2005, but the Cayman Islands and their solid structures are considered less vulnerable to the fierce tropical storms that churn through each year.

Paloma was expected to reach Cuba late today, delivering another blow to a country that has suffered $5 billion in damages from two hurricanes this year.