The difficult global economic environment continues to challenge Barbados's economic and fiscal performance. However, the Barbadian government has proposed a medium-term framework for achieving a sustainable improvement in its fiscal accounts. Based on this commitment, positive first-quarter 2010 fiscal results, and the expectation of a mild pick-up in tourism activity, we have affirmed the 'BBB/A-3' foreign-currency and 'BBB+/A-2' local-currency sovereign credit ratings on Barbados. The outlook remains negative because although Barbados will likely avoid economic contraction this year, economic recovery and fiscal consolidation will take longer than previously expected and are subject to many implementation and external risks. On April 28, 2010, Standard&Poor's Ratings Services affirmed its 'BBB/A-3' foreign-currency and 'BBB+/A-2' local-currency sovereign credit ratings on Barbados. The
