On July 26, 2006, Standard & Poor's Ratings Services revised its outlook on Barbados to stable from negative. Standard & Poor's also affirmed its 'BBB+' long-term foreign, 'A-' long-term local, and 'A-2' short-term currency sovereign credit ratings on Barbados. The change in outlook reflects a fiscal adjustment that is currently underway. This is expected to lead to a small surplus of 0.2% of GDP in the 2007 calendar year, up from a deficit of 0.9% (including the large surpluses of the National Insurance Scheme) in 2006, as capital spending--much of which is associated with the preparation for the 2007 World Cricket Cup--tapers off. The improvement should to lead to gradually lower net general government debt, falling to 37% of GDP
