NEW YORK (Standard & Poor's) July 29, 2005--Standard & Poor's Ratings Services said today that it revised its outlooks on its long-term foreign and local currency sovereign credit ratings on Barbados to negative from stable. Standard & Poor's also affirmed its 'BBB+' long-term foreign currency, 'A-' long-term local currency, and 'A-2' short-term sovereign credit ratings on Barbados. According to Sovereign & Poor's credit analyst Richard Francis, the change in outlook is a result of increasing external pressures due to high current account deficits (10% of GDP in 2004 and 2005) and rising external debt, much of it short term. Combined with declining international reserves, this has resulted in a continuing deterioration in external liquidity, with key external indicators expected to
