CariCris Upgrades Barbados’ Local Currency Rating

• Regional rating agency, CariCRIS, has upgraded Barbados’ regional scale local currency rating to “ CariBB” with stable outlook, up from “Cari D”. CariCRIS has also maintained its Regional Scale Foreign Currency rating of CariD (Default) on the country’s foreign currency denominated debt.

 

• The rating agency said its decision to upgrade the rating on the local currency debt was driven by the closure of the exchange offer for domestic debt. The restructured debt is estimated to potentially save $500 million in interest per year.

 

• Upon successful completion of negotiations with foreign debt holders, CariCris said it will similarly revise its ratings on the country’s foreign currency debt Government is expected to complete the external debt restructuring by the end of March.

 

• As at October last year, Barbados debt to GDP stood at just over 124% (down from 170% last May), making it one of the highest in the Caribbean.  The rating agency projects that Barbados will grow by 1% this year.

(Source: Barbados Today)