Limited fiscal policy options, structurally vulnerable fiscal revenues, ongoing spending pressures, and rising debt A small, open economy with high dependence on the U.S. and the U.K. and weakening competitive position Political stability and strong governance, reflecting mature political, judicial, and economic institutions Large surpluses at the National Insurance Scheme, providing flexibility to fiscal accounts Our ratings on the sovereign of Barbados reflect its large fiscal deficits and high debt burden, as well as its limited fiscal flexibility and reliance on external financing. However, the country has a stable, predictable, and mature political system, which benefits from consensus on major economic and social issues, including support from the private sector and trade unions for the government's ongoing fiscal and structural
