MINISTRY OF FINANCE & ECONOMIC AFFAIRS ‘REACTS’ TO RECENT DOWNGRADE OF BARBADOS’ CREDIT RATING BY RATING AGENCY STANDARD AND POOR’S (YET AGAIN)
The Ministry of Finance and Economic Affairs notes with regret the recent downgrade of Barbados’ credit rating by rating agency Standard and Poor’s. The downgrade by Standard and Poor’s lowers the credit rating one notch, which puts their rating in line with that of Moody’s.
In the coming week, Government will release its fiscal out-turn figures for the financial year ending March 2017 and Estimates for the coming Financial Year 2017-2018. In both cases, it will be noticed that not only has Government met its fiscal target for the current fiscal year, but it has planned its budget to realise a further reduction in the deficit for the coming fiscal year. This should ease Government’s financing requirements for the coming financial year and lead to a claw back in the level of Central Bank accommodation of the fiscal deficit going forward.
Throughout this process, the Government of Barbados remains committed to sensible and responsible fiscal adjustment that achieves our ultimate objectives of a balanced budget, stable and growing reserves, increased economic output and a cohesive integrated social fabric that promotes the well-being of all its citizens while protecting the most vulnerable.