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.