S&P lowers Barbados global bonds to D

S&P said it lowered its issue-level rating on Barbados' global bonds due 2021 to D from CC. At the same time, S&P affirmed its SD/SD long- and short-term foreign currency sovereign credit ratings on the country.

The CC/C long- and short-term local currency sovereign credit ratings remain on CreditWatch with negative implications, where they were placed June 6, 2018. S&P also rates three foreign currency senior unsecured debt issues CC, and those are also on CreditWatch with negative implications.

S&P said it affirmed its CC transfer and convertibility assessment on the government. Finally, S&P affirmed its D (default) rating on the country's 6 5/8% notes due 2035.

“The CreditWatch placement reflects our opinion that there is a greater than one-in-two chance that Barbados could default again on its local and foreign currency debt within the next three months. We could lower the local currency sovereign credit rating to SD if Barbados fails to make debt service payments on its local currency debt or executes an exchange with bondholders,” S&P said in a news release.

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