Despite various adjustment efforts on both revenues and expenditures, Barbados' fiscal accounts remain under pressure with ongoing large deficits, a high debt burden that continues to rise, and narrower financing options. GDP growth could turn a corner next year with increased investment in tourism projects, but it is likely to remain low, limiting prospects for revenue growth. We are lowering our long-term sovereign credit ratings on Barbados to 'B' from 'BB-' and affirming our short-term ratings at 'B'. The negative outlook reflects the potential for a downgrade if recent measures fail to gradually stabilize the debt burden, if tourism investment projects fail to support a turnaround in growth, or if external pressures mount. On Dec. 19, 2014, Standard&Poor's
