Aug 2023 Financial News

Moody's upgrades Barbados' ratings to B3 from Caa1

Aug 03, 2023

NewYork,August 03, 2023 --Moody's Investors Service (Moody's) has today upgraded the government of Barbados issuer ratings to B3 from Caa1 and maintained the stable outlook.The key drivers behind the rating decision are:

1. Pre and post-pandemic fiscal consolidation that, coupledwith a strong economic recovery, have led to a declining debt burden
2. Implementation of durable structural reformswill support acheiving higher fiscal primary surpluses
3. Reduced government liquidity risk coupledwith adequate foreign exchange buffer supportBarbados' credit profile

Barbados' local currency country ceiling has been moved up in line with the sovereign rating and is now set at Ba3,
while the foreign currency country ceiling was raised to B2 from B3.The three-notch gap between the sovereign rating
and the local currency ceiling reflects low government intervention in the economy, strong rule of law, consistent
macroeconomic policies and low political risk.The two-notch gap between the foreign-currency ceiling and the local
currency ceiling incorporates relatively high external vulnerability and capital controls on foreign exchangemovement.

Source:

Moody's 

Thursday 3rd August, 2023