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Barbados Sees Third Credit Rating Upgrade: Central Bank Governor Urges Increased Investment, Economist Evaluates Impact
Barbados' Central Bank Governor calls for increased investment, particularly from the private sector, following the country's third credit rating upgrade. Economists discuss the impact on financing costs and investor confidence.
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Originally published by nationnews.com (opens in new tab)
Central Bank Governor Dr Kevin Greenidge is calling for a major injection of investment this year, especially from the private sector, on the heels of Barbados receiving its third credit rating upgrade since October.
However, economist Dr Ankie Scott-Joseph, while giving an overall positive assessment of the upgrade’s impact on the cost of financing and investor confidence, said the “effects of upgrades were not as visible as downgrades because investors have the tendency to incorporate negative news viciously into their decisions than positives”.
Stable outlook
Caribbean Information and Credit Rating Services Limited (CariCRIS) announced yesterday that it upgraded by onenotch from CariBBB- to CariBBB (Regional Scale Local Currency) the sovereign issuer credit ratings assigned to Government with a stable outlook.
It said the ratings “indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in the Caribbean is adequate” and that the stable outlook is “based on the balance between the anticipated primary surpluses which contain debt and the modest growth expected over at least the medium-term”.
The CariCRIS upgrade follows the October 15 Fitch Ratings upgrade of Barbados’ credit rating from B to B+ with a stable outlook and the November 5 upgrade by Standard & Poor’s (S& P) from B- to B with a positive outlook. (SC)
