BARBADOS’ HORRIBLE RUN with the rating agencies has continued with the country receiving another punishing downgrade, but this time a prediction of a “credit event” hangs over the island.
Yesterday, Moody’s Investors Service rocked the country with another cut in Government’s bond and issuer ratings to ‘Caa3’ from the ‘Caa1’ it assigned last April. The action came less than a month after Standard Poor’s also cut the country’s sovereign rating.
Offering the rationale for its actions, Moody’s said it was very concerned about Barbados’ high debt levels and the lack of space for fiscal reform.
To make matters worse, rising domestic and external financing pressures were likely to create a situation where the country would find it difficult to service its debt obligations. (GE)
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