Another upgrade

epa03018640 (FILE) A file photo dated 13 July 2011 of the sign outside the New York offices of Moody's Corporation in New York, New York, USA. Moody's, a leading international ratings agency on 29 November 2011 threatened to downgrade the subordinated debt ratings of 87 European banks in 15 countries, including key lenders in France, Italy and Spain. US ratings agency Moody's said in a statement that the move would be in response to the potential removal of government support from the institutions concerned. It said that 87 banks in 15 countries were placed on review for a downgrade, the ratings company said in a statement. The subordinated debt may be cut on average by two levels, with the rest lowered by one grade. EPA/ANDREW GOMBERT *** Local Caption *** 00000402822243

Barbados has received its second credit rating upgrade in the last seven months. Yesterday, international rating agency Moody’s announced that having seen improvements in the country’s debt position, it raised Barbados’ foreign and local currency issuer ratings to Caa1 from Caa3, affirmed the foreign currency senior unsecured bond rating at Caa3, and maintained the stable outlook.

Moody’s said the island’s “capacity to service its restructured and potential future debt obligations has materially improved”. It added the decision to upgrade the foreign and local currency issuer ratings to Caa1 “signals the improved debt service capacity now and in relation to future issuances”.

Last November, following about two dozen downgrades by various entities, another leading rating agency Standard & Poor’s (S&P) raised its long and short term local currency ratings for Barbados from selective default (SD/SD) to B-/B. S&P also assigned a B- local currency issue rating on the domestic debt issued in the recent debt exchange.

Moody’s, whose rating committee on Barbados met on June 27, said its decision to issue new ratings reflected several considerations.

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