Political stability and strong governance, reflecting mature political, judicial, and economic institutions. Monetary stability supported by a long-standing fixed-exchange-rate regime. Large surpluses at the National Insurance Scheme provide flexibility to fiscal accounts. Growing fiscal pressures, which are raising an already high debt burden and, if unabated, will weaken the long-standing currency peg. A small, open economy with few growth prospects outside the tourism sector and weak external liquidity. The ratings on Barbados reflect the country's social cohesion and political stability as well as the fiscal flexibility that the National Insurance Scheme (NIS) surpluses provide. At the same time, the growing fiscal deficits and ensuing increase in the government debt burden do not bode well for the country's long-standing commitment to
