Research Update: Barbados Local Currency Rating Lowered To 'SD' From 'CC'; Global Bonds Due 2019 And 2022 Downgraded To 'D' From 'CC'

On Aug. 4 and Aug. 6, Barbados failed to make coupon payments on its global bonds due 2022 and 2019, respectively, and we do not expect it to make these payments. In line with our criteria for timeliness of payments, we are lowering the issue-level rating on these global bonds to 'D' from 'CC'. As well, on Aug. 2, Barbados made an "automatic" principal rollover on its principal payments on short-term local currency issues, which we consider as paramount to default; and also learned that Barbados performed a similar operation on July 11. Based on our criteria for timeliness of payments and our Ratings Definitions, we are therefore lowering our long- and short-term local currency sovereign ratings on Barbados to

...+ On Aug. 4 and Aug. 6, Barbados failed to make coupon payments on its global bonds due 2022 and 2019, respectively, and we do not expect it to make these payments. + In line with our criteria for timeliness of payments, we are lowering the issue-level rating on these global bonds to 'D' from '##'. + As well, on Aug. 2, Barbados made an "automatic" principal rollover on its principal payments on short-term local currency issues, which we consider as paramount to default; and also learned that Barbados performed a similar operation on July 11. + Based on our criteria for timeliness of payments and our Ratings Definitions, we are therefore lowering our long- and short-term local currency sovereign ratings on Barbados to '##/##' from '##/C', respectively. + As well, we are affirming our '##' long-term foreign currency sovereign credit rating on the country, our 'D' issue rating on the notes due 2021 and 2035, and our '##' issue ratings on long-term local currency issues for which Barbados...

Research Update