Caribbean Information and Credit Rating Services Limited (CariCRIS) has upgraded the Regional Scale Local Currency rating of the Government of Barbados (GOB) from CariD (Default) to CariBB, with a stable outlook. We however maintain the Regional Scale Foreign Currency rating of CariD (Default) on the country’s foreign currency denominated debt. The Local Currency Regional Scale rating indicates that the level of creditworthiness of the GOB, adjudged in relation to other rated obligors in the Caribbean, is below average.

Our decision to upgrade the rating on the local currency debt is driven by the closure of the exchange offer for domestic (Barbados dollar-denominated) debt. This marks the successful completion of the restructuring of Bds $11.9 billion (equivalent to US $5.95 billion) in Barbados dollar-denominated claims on the Government of Barbados and its public sector. The restructuring is a central plank of the GoB’s Comprehensive Debt Restructuring Programme and the Barbados Economic Reform and Transformation (BERT) Plan. We have maintained our rating of CariD on the foreign currency debt as negotiations with foreign debt holders are not yet concluded. Upon successful completion of these negotiations, we will similarly revise up our ratings on the country’s foreign currency debt. (PR)