This article was originally published on Aug. 30, 2004. It is being republished to correct an error in the Rating History section. Political stability, underscored by broad agreement on economic and social policies. A long-standing fixed-exchange-rate regime that provides monetary stability. A moderate net (of usable reserves) public-sector external debt burden, projected to reach 33% of current account receipts in 2004. Difficulty achieving fiscal surpluses during the upside of the business cycle, which would bolster the credibility of the fixed-exchange-rate regime. A small, open economy with few growth prospects outside the tourism sector and high current account deficits, which leaves Barbados vulnerable to negative external factors. Increasing banking-sector vulnerability stemming from declining profitability. The ratings on Barbados reflect political stability
