S&P Global Ratings lowered its issue-level ratings on Barbados' local-currency issues outstanding to D, or default, from CC, citing the Caribbean country's expected completion of its local-currency debt exchange offer.

The rating agency affirmed Barbados' long- and short-term foreign- and local-currency sovereign credit ratings at SD, or selective default, and maintained its D ratings on foreign-currency issues.

S&P noted that the Barbados government has announced nearly full acceptance of the creditors' offer terms under its local-currency debt exchange, and confirmed a plan to issue new debt under the exchange by Oct. 31. The rating agency also expects the government to continue talks with external creditors to begin a foreign-currency debt exchange in the near term.

"Once the respective exchange offers are complete, and we are able to conduct a forward-looking review that takes into account the benefits from the exchanges, as well as any other interim developments, we will change the respective issuer and issue ratings," S&P said, adding that it will "most likely" raise Barbados' issuer credit rating to CCC or to low B categories after analyzing the sovereign's general credit standing.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.