Barbados' economic fundamentals continue to weaken, reflecting not only tough economic and uncertain financial conditions globally, but also rising competitiveness and other structural shortcomings. The fiscal stance remains weak, as reflected in the rising debt burden, off-budget spending, and outstanding contingent liabilities. The government's large fiscal deficits and high debt burden, as well as its limited policy options to lower those in the context of the small, open, and vulnerable economy, constrain the ratings. However, the country has a stable, predictable, and mature political system, which benefits from consensus on major economic and social issues, including support from the private sector and trade unions for the government's ongoing fiscal and structural adjustment program. Barbados is slowly recovering from the severe
