By: Tony Best
In a stunning move that shocked Barbadians at home and in the Diaspora, Standard & Poor’s, the Wall Street credit rating giant, has downgraded Barbados’ credit rating from investment grade to junk bond status.
The rating fell from BBB- to BB+ with a stable outlook, meaning that at least for the time being, it would remain at the new level.
In a statement, S&P blamed Barbados’ weakening “economic fundamentals which is complained reflected “not only the external environment but also more pronounced competitiveness and structural shortcomings” for the downgrade.
“We believe that the fiscal stance remains weak, as seen in the rising debt burden, off-budget spending and outstanding contingent liabilities,” added S&P.
It’s the first time in more than a dozen years that Barbados’ its credit rating fall to such a low level.