S&P sees negative outlook for island
STANDARD & POOR’S (S&P) HAS REVISED Barbados economic outlook to negative from stable, while the agency is keeping the ‘BB+/B’ credit rating it assigned the country last year.
In a release yesterday, S&P analyst Richard Francis said Barbados had slipped back into recession after a weak recovery between 2010 and 2012.
But Francis warned that unless the country made quick adjustments to narrow the widening deficit, the country could face another downgrade.
“The outlook revision reflects the potential for a downgrade if the wider fiscal deficit is not reversed or if external pressures associated with persistent current account deficits mount,” the international rating agency pointed out.
S&P said: “Barbados’ economic fundamentals continue to weaken, reflecting not only the tough global economy, but also competitiveness and other structural shortcomings.