THERE IS A MAJOR divide in the local economics community over Standard & Poor’s (S&P) decision to hit Barbados with another sovereign downgrade and a negative outlook.
On Friday, the powerful international ratings agency cut Barbados’ sovereign rating from BB- to B, which is deep in junk bond territory. The move came after the agency maintained the country’s rating for almost two years even when Moody’s knocked the country out of investment grade status with a double downgrade to Ba3 December 2013 and then even lower six months later to B3.
But yesterday the Central Bank blasted S&P’s decision saying there were no grounds for the downgrade.
The Central Bank, which has been a key player in Government’s much touted fiscal strategy, deemed S&P’s actions as “without justification”.
Please read the full story in today’s Sunday Sun, or in the eNATION edition.
