Business
S&P downgrades Barbados credit rating
The ratings agency, Standard & Poor’s (S&P) has revised downwards the long-term rating for Barbados – the second downgrade in four months.
Late Wednesday, the credit rating agency announced that it had moved the island-nation’s rating from BB+ to BB- in response to a persistent current account deficit and a high fiscal deficit.
“The downgrade reflects the mounting external pressures associated with a persistent current account deficit and external financing challenges, as well as the ongoing high fiscal deficit largely because of a substantial fall in government revenues as a result of the weak economy,” the agency said.
According to S&P due to the large fiscal deficits, it is expected that the net general government debt burden will rise to above 70 percent of gross domestic product (GDP) in fiscal 2013 (ending March 2014) from 67 percent in fiscal 2012 and 60 percent in fiscal 2011. -(CMC)