CaribWorldNews, NEW YORK, NY, Fri. May 15, 2009: Ratings service, Moody`s may downgrade the credit ratings of the island of Barbados, reports indicate.
Dow Jones reports on Thursday claimed the agency is reviewing its credit ratings on Barbados` foreign- and local-currency bonds to possibly downgrade the overall rating as government debt mounts.
Moody`s senior analyst Alessandra Alecci was quoted as saying that Barbados` credit metrics have been deteriorating in recent years and the nation`s public debt has more than doubled.
The nation`s local-currency rating is A3, four notches above junk territory.
The Moody`s claim comes just weeks after Standard & Poor`s Ratings Services changed its ratings outlook to negative from stable for Barbados, citing the government`s budget gap.