NEW YORK (Standard&Poor's) Aug. 18, 2008--Standard&Poor's Ratings Services said today that it affirmed its 'BBB+/A-2' foreign currency and 'A-/A-2' local currency sovereign credit ratings on Barbados. Standard&Poor's also said that the outlook on Barbados remains stable. "Supporting the ratings are the country's social cohesion and political stability as well the fiscal flexibility provided by the National Insurance Scheme surpluses," explained Standard&Poor's credit analyst Richard Francis. "The vulnerabilities posed by the narrowness of the economic base and sizeable external imbalances somewhat offset these strengths." Standard&Poor's expects the central government deficit to narrow to 2.7% of GDP in 2008 from 3.1% in 2007, as corrective revenue-generating measures--including higher fees and excise taxes
