REGRETTABLE.
This is how the Barbados Chamber of Commerce and Industry has described the news that Sagicor plans to move its headquarters from the island in the face of downgrades from Standard & Poor’s.
In a statement issued today, the BCCI pointed out that for some time it had been sharing its concerns related to the impacts of ongoing downgrades on the cost of borrowing both for Government and the private sector.
President Tracey Shuffler said: “While several Barbadian-based businesses have solid financials and reasonable prospects for future development, the underlying country risk cannot be underestimated or dismissed.”
She went on to state that: “These country risks, when deemed significant enough by international ratings agencies to occasion a series of downgrades, will have a negative impact on businesses’ cost of borrowing. Because of these negative pressures, further investment in Barbados has become less attractive compared to investment grade jurisdictions.”
Sagicor Financial, a non-operating holding company, is giving consideration to moving its domicile from Barbados in order to protect its own rating from downgrades tied directly to country risk.
“While this prospective move is very regrettable, it is clearly a protective strategy under the circumstances. The fact is that boards of directors and executive management teams must make decisions which protect and improve the value of their shareholders’ investments,” the statement said.
Shuffler concluded by saying: “The Chamber continues to hold the interests of this country and its various communities at heart and for this reason we will strive to participate in and drive efforts to return Barbados to a path of growth and economic stability. Growth and recovery are key to an improved economy, improved investment ratings and a return of investor confidence.” (PR/NB)
