Barbados may have avoided dreaded credit downgrade

(Barbados Nation) Barbados may have avoided a dreaded downgrade from the powerful international rating agencies.

And Governor of the Central Bank Dr DeLisle Worrell is certain the island convinced Standard & Poor’s (S&P) and Moody’s during a state-initiated road show last month it was closing the worrying debt-to-GDP ratio, bringing down public debt and achieving growth, though it was minimal.

With a triple-B investment grade rating from both Moody’s and S&P, any further downgrade would put Barbados in junk bond status and erode the chances of raising capital on the international market at reasonable rates.

A downgrade would also have implications for the ratings of major public companies which might seek international financing.

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