Research Update: Barbados Long-Term Foreign Currency Rating Lowered To 'SD' After Missed Coupon Payment

Foreign Currency: SD/--/SD Local Currency: CC/Watch Neg/C For further details see Ratings List. On June 1, 2018, Barbados' newly elected government announced it would immediately suspend its external debt service payments and seek to make interest payments on its domestic debt while negotiating a restructuring agreement with domestic creditors. On June 5, 2018, Barbados failed to make an interest payment due on its 6.625% notes due 2035, and we do not expect such a payment to be made. We also believe that Barbados will fail to pay its other outstanding external debt obligations as they come due while it negotiates a restructuring agreement with external creditors. We are therefore lowering our long-term foreign currency sovereign credit rating on Barbados to

...+ On June 1, 2018, Barbados' newly elected government announced it would immediately suspend its external debt service payments and seek to make interest payments on its domestic debt while negotiating a restructuring agreement with domestic creditors. + On June 5, 2018, Barbados failed to make an interest payment due on its 6.625% notes due 2035, and we do not expect such a payment to be made. We also believe that Barbados will fail to pay its other outstanding external debt obligations as they come due while it negotiates a restructuring agreement with external creditors. + We are therefore lowering our long-term foreign currency sovereign credit rating on Barbados to '##' (selective default) from '###+' and our long-term local currency rating to '##' from '###'. We are also lowering our long-term foreign currency issue rating on Barbados' 2035 notes to 'D' from '###+'. + Another four long-term foreign currency issue ratings and the local currency sovereign issuer credit and issue ratings...

Research Update