...Another downgrade from Moody’s Investors
Barbados has received yet another downgrade from Moody’s Investors Service.
On Friday, Moody’s downgraded the government bond rating from Ba1 to Ba3, citing poor economic growth and rising fiscal deficits.
Moody’s also pointed to the rising costs of funding and the increasing reliance on short-term funding, citing the country’s “continued anemic economic performance”, ongoing deterioration in the government’s financial strength, due to persistently large fiscal deficits and rising debt levels; the deterioration in the government’s debt profile as a result of the significant increase in domestic short-term borrowings over the past two years; and the fall in foreign exchange reserves by more than 30 per cent during January-September to BDS$505 million for its two-notch downgrade.
Moody’s also said the country’s credit outlook remained negative.