On July 29, 2005, Standard & Poor's Ratings Services revised its outlooks on its long-term foreign and local currency sovereign credit ratings on Barbados to negative from stable. Standard & Poor's also affirmed its 'BBB+' long-term foreign currency, 'A-' long-term local currency, and 'A-2' short-term sovereign credit ratings on Barbados. The ratings on Barbados are supported by: Political stability and strong governance, reflecting mature political, legal, and economic institutions; Monetary stability, supported by a long-standing, fixed-exchange-rate regime; and Strong human development indicators, reflecting high per capita income and good education and health systems. The ratings are constrained by: Limited fiscal flexibility, due to relatively high general government debt level and the resulting high interest debt burden. A small, open economy,
