Feb 2006 Financial News

Barbados Ratings remain consistent

Feb 08, 2006

THERE has been no change in Barbados' ratings by Standard and Poor's, the world's leading sovereign credit rating firm. Standard and Poor's has issued its projections for the economies of Latin America and the Caribbean for 2006.

In it, Barbados' ratings have remained unchanged. The BBB+ rating on long-term foreign currency, which Barbados has received remains unchanged when compared to that in 2005. This rating has been dubbed one of the highest among developing countries, this is even more apparent when compared with ratings which other developing states in the region have received.

According to the Standard and Poor's projections for 2006, Barbados is listed at 21 with figures of US$ 90 million for the gross long-term borrowing among the countries in Latin America and the Caribbean. Countries listed below Barbados include Bermuda, Grenada, Montserrat and Suriname. Jamaica is the top-listed CARICOM country listed at ten with US$1.81 billion.

Standard and Poor's generally expects that the level of gross borrowing for 2006 will be reduced when compared to 2005. The credit ratings firm expects that gross long-term borrowing for 24 Latin American and Caribbean countries is likely to reach US$290 billion for this year, which will be slightly below figures of US$295 billion for 2005.

The decrease in gross borrowing has been attributed in some measure to prepayments of official funding and refunding of external commercial debt that would mature this year.

This can be applied to Barbados in some measure given that government in 2005 did take some financial measures in preparation for Cricket World Cup 2007 and other necessary but unanticipated temporary spending.


Stacia Browne
Barbados Advocate
Monday, 6th February, 2006.
http://www.barbadosadvocate.com/NewViewNewsleft.cfm?Record=24348