(Barbados Nation) Having lost its prized investment grade credit rating last year, Barbados has been dealt another blow by Standard & Poor’s (S&P) which last night downgraded the country again and assigned a negative outlook to its economic performance.
S&P, however, affirmed the short-term rating at B. This means that the country is regarded as vulnerable though it currently has the capacity to meet its financial commitments; however, it faces major ongoing uncertainties which could lead to inadequate capacity to pay its debts.
The international rating agency said Barbados was facing mounting external pressures with external financing challenges as it struggled to control its deficit and faced rising debt levels and falling tourism receipts.
“We are lowering our long-term rating on Barbados to BB-minus from BB-plus,” the agency said. “The negative outlook indicates a better than one-in-three chance of a downgrade if investment and growth prospects fail to strengthen and external and fiscal pressures continue to complicate financing,” it said.
