AS BARBADOS REMAINS in the economic doldrums, last Friday’s downgrade by Standard & Poor’s to a CCC+ rating with a negative outlook has pushed the country further into junk bond territory.
In essence, Barbados is now rated lower than Greece and most countries in the Western Hemisphere and globally. Only Belize and Venezuela in the Caribbean and Latin American region are in Barbados’ cellar, explained S&P.
“The negative outlook reflects the potential for a downgrade over the next 12 months should the Government fail to make additional progress in lowering its high fiscal deficit or if external pressures worsen with persistent and large current account deficits,” said Dr Lisa Schineller, S&P’s analyst who monitors Barbados’ economy and who participated in the decision to lower the rating.
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