We are affirming our 'BBB-/A-3' local and foreign currency ratings on Barbados. Global events are weakening Barbados' economic recovery. We believe that the high fiscal pressures may hinder Barbados' medium-term growth. Barbados' recent revenue measures and expenditure constraints will help to narrow its fiscal deficits, but the pace of fiscal consolidation is slower than expected, which has led to a continuous rise in the government's debt, with general government gross debt expected to remain above 70% of GDP this year before edging downward. We are revising the outlook to negative; this reflects the rising risk of a downgrade should the combination of lackluster growth and insufficient fiscal adjustment within the next twelve months indicate a higher debt burden or a
