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Central Bank of Barbados Comments on Standard and Poor’s Latest Ratings
http://www.caribbeanpressreleases.com/articles/8919/1/Central-Bank-of-Barbados-Comments-on-Standard-and-Poors-Latest-Ratings/Page1.html
S Coward

 
By S Coward
Published on 23-Nov-11
 

Bridgetown - Nov. 23, 2011 - On November 18, 2011, Standard & Poor's Ratings Services (S&P;) affirmed its BBB-/A-3 local and foreign-currency sovereign credit ratings on Barbados.  However, the outlook has been revised to negative from stable. 


Bridgetown - Nov. 23, 2011 - On November 18, 2011, Standard & Poor's Ratings Services (S&P;) affirmed its BBB-/A-3 local and foreign-currency sovereign credit ratings on Barbados.  However, the outlook has been revised to negative from stable. 


The essential message of the S&P; Press Release is the vital importance of achieving the fiscal targets of the Government's revised Medium Term Fiscal Strategy (MTFS). The economic outlook has worsened, because of the weakened performance of the industrial countries. That means lower expectations of foreign exchange inflows for Barbados in the immediate future, even though targeted investments should lift foreign earnings down the road.  Barbados has a high propensity to import; therefore, Government’s expenditure must be further contained, to conserve foreign exchange. The S&P; report concludes that the outlook for Barbados may stabilise, provided that Government achieves its fiscal consolidation targets.