Credit rating drops to B-
BARBADOS’ LONG-TERM sovereign credit ratings have been lowered from “B” to “B-” on the high fiscal deficits by international agency Standard & Poor’s, which has also posted a negative outlook reflecting a high potential for a further downgrade.
In a statement issued Friday, S&P said Barbados’ fiscal adjustment again fell short of stemming another increase in debt to GDP, which is already very high and a key credit constraint.
It also noted that Central Bank financing of Government’s deficit continues, exacerbating the country’s financial and long-term weaknesses.
“As a result, we are lowering our long-term foreign and local currency sovereign credit ratings on Barbados to ‘B-’ from ‘B’,” S&P said. (AB)
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