A FORMER CENTRAL BANK economist is warning that the most recent downgrade could lead to more companies moving their headquarters from Barbados.
Winston Moore, a professor of economics at the Cave Hill Campus of the University of the West Indies (UWI) and the head of the campus’ Department of Economics, said Barbadians should now have no doubts about the effects of downgrades on the economy and Government financing.
He said the Standard & Poor’s (S&P) downgrade of the country’s long-term foreign and local currency to CCC+/C meant the country’s debt was considered “substantially risky”.
He added: “There are only five categories lower than this rating category in the S&P rating scale. In addition, we are now six categories below investment grade – a category that would enable financial institutions within and outside of Barbados to lend us money without significantly increasing their own risk ratios.” (GE)
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