Political stability and strong governance, reflecting mature political, legal, and economic institutions. Monetary stability, supported by a long-standing, fixed-exchange-rate regime. Strong human development indicators, reflecting high per-capita income and good education and health systems. Limited fiscal flexibility because of a relatively high general government debt level and the resulting high interest debt burden. 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. The ratings on Barbados reflect increasing external pressures because of high current account deficits (10% of GDP in 2004 and 2005) and a consequent increase in external debt, much of it short term. As a result, and combined with declining international reserves,
