S&P: Barbados outlook negative

Standard & Poor's said it revised its outlook on Barbados to negative from stable and affirmed its BBB long-term foreign-currency credit rating, BBB+ long-term local-currency credit rating. A-3 short-term foreign-currency credit rating and A-2 short-term local-currency credit rating. The transfer and convertibility assessment for Barbados is BBB+.

The agency said the outlook revision is due to its view that the timeliness and magnitude of the government's fiscal consolidation, necessary to preserve Barbados' credit fundamentals at the current BBB level, is uncertain because of a worse-than-anticipated economic recession in the country.

The negative outlook reflects the possibility of a downgrade if the authorities fail to contain fiscal deficit widening this year and reduce fiscal deficits starting in 2010, S&P said.

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