This report supplements our research update "Barbados Long-Term Sovereign Credit Ratings Lowered To 'B-' From 'B' On High Fiscal Deficits; Outlook Is Negative," published on Sept. 23, 2016. To provide the most current information, we may cite more recent data than that stated in the previous publication. These differences have been determined not to be sufficiently significant to affect the rating and our main conclusions. The financial profile of Barbados' government has eroded over the last several years because of persistently high fiscal deficits, reflecting both budget slippage and unbudgeted spending. The central bank continues to directly finance the government, which we consider at odds with its goal to defend Barbados' long-standing currency peg with the U.S. dollar. The government
