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.