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Downgrades …16,17,18,19 -Moody’s Credit Rating Condemns Barbados Bonds to the Ultra-High Yield Club

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Read full article: Ultra-High Yield Club Gets a New Member as Barbados Bonds Slump

We have had experts and commentators from Barbados and afar opined that the battery of credit rating downgrades levied on Barbados by the international credit agencies will add to our economic woes. Fighting to defend our peg to the US dollar becomes harder because running hard deficits as a net importer translates to pressure on the foreign reserves.

Barbadians everywhere EXCEPT yardfowls and Prime Minister Stuart believe there is no reason to be concerned. If one surveys the graph above  it is obvious Barbados bondholders are very concerned. Surely the conversation will now move to flight of capital.

Will somebody tell the prime minister to shut the hell up?

 

269 responses to “Downgrades …16,17,18,19 -Moody’s Credit Rating Condemns Barbados Bonds to the Ultra-High Yield Club”

  1. Exclaimer Avatar
    Exclaimer

    @ Tron March 11, 2017 at 8:57 PM ,

    Don’t thank me. You should thank the author of the article – James S Henry. I’m merely a cutter and “pasteter”. The Barbados Media operates in a theatre of fear. Fortunately we have access to the internet and the international media; both sources are more trustworthy than our domestic media.

  2. Tron Avatar
    Tron

    There are some questions concerning the Credit Suisse loan.

    On the one hand IMF conditionality, on the other hand 2,400 new jobs for lost souls in the so-called civil-service. Contradiction?

    Questions

    1) Is Barbados in breach of the syndicated loan facility aka CS loan due to the employment of said people? Would explain Moody´s rating which translates to partial default.

    2) Or has the MoF achived an arrangement which allows him to stop austerity in exchange for WHAT? For devaluation in XY months? For selling exploration rights for oil and gas in the Atlantic Ocean? For firing Dr Voodoo-economics?

    The terms of the CS loan do obviously not fit to the current spending.

  3. Tron Avatar
    Tron

    @David

    The tax haven Barbados is dying just now. The escape clauses in the offshore contracts are activated eg in the case of a downgrade to C, financial breakdown or revolution.

    No foreign investor will come to Barbados now to do any fresh offshore business, since a tax haven must offer financial security.

    There are multiple other island around with better rating, better policies, better prospect and a more motivated population.

  4. angela Skeete Avatar
    angela Skeete

    So funny how barbados elitist and so called intellectuals would block foreign investment but would encourage foreign financial economist to lite their country on fire

  5. Is Prime Minister Stuart Competent to Lead Barbados at this Time? | Barbados Underground

    […] “The tax haven Barbados is dying just now. The escape clauses in the offshore contracts are activated e.g. in the case of a downgrade to C, financial breakdown or revolution. No foreign investor will come to Barbados now to do any fresh offshore business, since a tax haven must offer financial security. There are multiple other island around with better rating, better policies, better prospect and a more motivated population.” – Tron […]

  6. Simple Simon Avatar
    Simple Simon

    @Piece Uh De Rock Yeah RIght – INRI March 10, 2017 at 2:02 PM “This is the same woman whose culinary dispositions are known all around the island?”

    Her culinary dispositions are no different from those of the majority of Bajans.

  7. Simple Simon Avatar
    Simple Simon

    @Gabriel March 10, 2017 at 12:49 PM “Just think of it!……One man has this country of 270,000 souls held to ransom and nobody can do anything about it because some law give him the authority…”

    Some law?

    or the Constitution.

    You have never complained when the same “some law” protected your right to own personal property.

    And now you find it an inconvenience?

  8. Simple Simon Avatar
    Simple Simon

    @lawson March 11, 2017 at 7:38 AM “You claiming barbados just got some self respect….dropping you aged off at the doors of the QEH….old people and disabled living like dogs in run down houses…”

    And some of you have abandoned your own young children, and elderly parents in the Caribbean. Have refused to spend a penny on them, or a minute with them.

    The old abandoned people at the QEH, are not just our parents. They are your parents too.

  9. Simple Simon Avatar
    Simple Simon

    @ngela Skeete March 11, 2017 at 7:48 AM “willing to allinged themselves with international financial institution policies that would hurt the people of barbados and march society into a dismal and protracted way of life”

    aligned NOT allinged

    Do you know that protracted means long? Of course we all want a protracted way of life, and if the BLP is offering that of course we will vote for them.

    Or as Owen used to say “everybody wants to go to heaven, but nobody wants to die”

    Or as some of us say “Lord take me to heaven…but not yet.”

  10. Simple Simon Avatar
    Simple Simon

    @Carson C. Cadogan March 11, 2017 at 9:58 PM “Can anyone supply the reason why Mia is not accepted by a large cross section of Bajans within and without the BLP?”

    Did Owen or you take a survey to see whether Mia was accepted or not? Did he? Did you?

    Further did not a large cross section of Bajans reject Owen’s Prime Ministership in the 2 most recent elections?

    And furthermore since this is the season of Lent did not a large cross section of people reject Jesus Christ?

    Don’t large cross sections reject Jesus Christ even now?

    Stupseee!!!!!!!!

    You and Owen really need to come up with some better arguments.

    Wunna think we still in Infants B.

  11. Simple Simon Avatar
    Simple Simon

    @Tron March 10, 2017 at 11:12 AM “no heating during harsh winter.”

    What harsh winter are you talking about?

    You know, don’t you that the temperature is always between 20 and 30 C?

    We may have other things to worry about but we don’t have to worry about harsh winters.

    Nor hot summers.

  12. Simple Simon Avatar
    Simple Simon

    @Piece Uh De Rock Yeah RIght – INRI March 10, 2017 at 9:17 AM “I shall again be praying for the flood-like rains to wash way Mugabe’s march tomorrow and do believe that Dr. Lucille Baird and Dr. Senator the Hon. David Durant will also pray wid de ole man too.”

    Well ole man, ya prayers weren’t answered. It was a fine very, very beautiful evening when I passed through the Lower Green on Saturday afternoon.

    I don’t know if that meannt anything…I’ll leave the interpretation to the theologians, Bush Tea, Zoe, Georgie Porgie et. al.

  13. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Both governments have this curse of negotiating the best contracts to benefit the foreign and local wealthy only and disenfranchise the majority populstion…always, it has been recognized as a curse for quite some years now. This incompetence was recognized as far back as 2013.

    “While its entire GDP is now only worth about $4.2 billion, and its population is smaller than that of Duluth Minnesota, this crisis is worth examining closely. For here we have a very precise example of the “finance curse,” where excessive dependence on high debt, an aggressive offshore haven industry, very low tax rates for high-net worth investors, foreign companies, and banks, and high tax rates for everyone else, have essentially brought this little country to its knees.”

  14. Simple Simon Avatar
    Simple Simon

    @Well Well & Consequences Observing Blogger March 10, 2017 at 9:50 AM #
    Lawson…because ya will be detained at the Canadian/US border this summer and returnd to GTA

    Not the GTA, that is sooooooooooo old school.

    The new(ish) name is The Six.

  15. Hal Austin Avatar
    Hal Austin

    Alvin,

    I think you are wrong. There is a Bajan connection, but not that.

  16. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Simple…that is only in the event that they dont deep six Lawson or send him to an immigration detention centre in Appalachia…lol

  17. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Lawson..look, the feds are closing in….lol

    “In addition to a special counsel, Congress could and should appoint a joint select committee to look into Kremlingate and issue a public report, but a special counsel would be likely to conduct a more professional investigation and, unlike lawmakers, would possess the power to indict, which may help loosen the tongues of suspects.

    There is a good reason why Trump and his partisans are so apoplectic about the prospect of a special counsel, and it is precisely why it is imperative to appoint one: because otherwise we will never know the full story of the Kremlin’s tampering with our elections and of the Kremlin’s connections with the president of the United States. As evidenced by his desperate attempts to change the subject, Trump appears petrified of what such a probe would reveal. Wonder why?”

  18. Alvin Cummins Avatar
    Alvin Cummins

    Bushy, David et al.
    The marches have been held, the downgrades are still being felt, the sky has not fallen, the taxes have been imposed and the medicine is working. We will not be panicked into either going and dying to borrow our way out of the difficulty, or getting further in debt. The populace will have to learn restraint and the government will have to exercise the patience and courage required to hold strain. Seven months have passed, we are still here and elections will not be called until next year. Tough on those hoping to see a devaluation, so that the american dollars you have stashed could bring a windfall. Tough tittee!!

  19. David Avatar
    David

    @Alvin

    You missed the debate in parliament yesterday? The government is about to borrow 200 million dollars?

    You need to keep up Alvin!

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