BARBADOS’ CREDITWORTHINESS has taken another beating.
International rating agency Standard Poor’s (S&P) yesterday downgraded the island for the second time in about six months.
Suggesting that Government seemed to have one eye on its fiscal and economic problems, and the other on the next general election, S&P lowered Barbados’ long-term local currency rating from CCC+ to CCC.
And in giving the rating a negative outlook, S&P said this reflected “the potential for a downgrade over the next 12 months should the Government fail to advance measures to significantly lower its high fiscal deficit, strengthen its external liquidity and reverse its low level of international reserves”.
In reaction, Barbados Chamber of Commerce and Industry president Eddy Abed was not confident Government would achieve the three targets. He urged the Freundel Stuart administration to urgently reconsider its stance not to approach the International Monetary Fund for help. (SC)
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