Research Update: Barbados Long-Term Foreign Currency Rating Raised To 'B-' From 'SD' On Debt Exchange

On Dec. 11, 2019, Barbados exchanged approximately US$531 million in new 2029 bonds and US$32 million in past due interest bonds to holders of its U.S. dollar bonds that have been in default since 2018, of which approximately US$677 million, plus accrued interest, was outstanding. This exchange will apply to holders of Barbados' English law-governed U.S. dollar bonds, certain Barbados law-governed U.S. dollar bonds, and a U.S.-dollar loan agreement. As a result, we are raising our long- and short-term foreign currency ratings on the country to 'B-/B' from 'SD/SD' and are assigning our 'B-' foreign currency issue rating to the foreign currency debt delivered in the exchange. The stable outlook balances our view of the government's commitment to a fiscal

...- On Dec. 11, 2019, Barbados exchanged approximately US$531 million in new 2029 bonds and US$32 million in past due interest bonds to holders of its U.S. dollar bonds that have been in default since 2018, of which approximately US$677 million, plus accrued interest, was outstanding. - This exchange will apply to holders of Barbados' English law-governed U.S. dollar bonds, certain Barbados law-governed U.S. dollar bonds, and a U.S.-dollar loan agreement. - As a result, we are raising our long- and short-term foreign currency ratings on the country to 'B-/B' from '##/##' and are assigning our 'B-' foreign currency issue rating to the foreign currency debt delivered in the exchange. - The stable outlook balances our view of the government's commitment to a fiscal and institutional adjustment with the economic and political challenges of doing so....

Research Update