A MERE SIX weeks after affirming last September’s downgrade of Barbados’ long-term credit ratings to the low end of the “B” scale, international agency Standard & Poor’s yesterday further lowered the standing into the realm of the highly speculative “C” categories.
S&P said it dropped the long-term foreign and local currency sovereign credit ratings to “CCC+” from “B-” and the short-term to “C” from “B”, while assigning a negative outlook.
“The downgrade reflects our view that the Government of Barbados’ willingness to take timely, proactive corrective measures to strengthen its financial profile continues to erode,” the agency said.
“In our view, a weaker ability to meet its debt servicing requirements stems from still high fiscal deficits, limited access to private sector funding in the local market, as well as a decline in external funding, and with it foreign exchange reserves.” (AB)
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