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Barbados get downgrade.
14 October 2009 09:49 am
Barbados may have gotten a high quality of living stamp but its bond rating was yesterday downgraded to the brink of junk.
Moody's Investors Service on Tuesday lowered the Barbados government bond rating to the brink of junk territory, stating that the nation's government debt has more than doubled. Barbados' bond rating was lowered to Baa3, or just one notch into investment grade.
Moody's expects the island's debt to exceed 100 percent of its economic output, compared with 65 percent in 1999.
Moody's said structural issues that have lead to a higher debt burden for the Caribbean nation, which is heavily dependent on tourism and offshore financial services for its income.
'Barbados' key debt indicators have been on a deteriorating path over the past decade, and are now at levels that compare poorly with other countries in the same rating category,' stated Moody's analyst Alessandra Alecci in the Wall Street Journal.
The Moody's report comes just four month after Standard & Poor's Rating Services cut Barbados' credit ratings closer to junk territory, putting the rating at BBB, or two notches above junk.
source:caribworldnews.com
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