Barbados’ recent credit rating upgrade by Moody’s is expected to lower borrowing costs, attract more investment, and create room for greater public spending—all positive signs for the island’s economic trajectory, according to leading economist Professor Justin Robinson.
Moody’s decision to lift the country’s long-term issuer and senior unsecured ratings from B3 to B2, while maintaining a stable outlook, reflects increasing international confidence in Barbados’ ongoing economic reforms and fiscal management.
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Professor Robinson, Principal of The University of the West Indies Five Islands Campus and a seasoned finance expert, welcomed the development. He explained that while a credit rating may seem distant from daily life, it brings tangible benefits to Barbadians.
“A stronger credit rating eases the strain on public finances and opens the door to more spending on essential services like health, education, infrastructure, and social support,” he said. “It also helps to preserve household purchasing power and supports employment in critical sectors like tourism, construction, and business services.”
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The upgrade is seen as a direct result of the government’s fiscal prudence under the Barbados Economic Recovery and Transformation (BERT) programme. Since its launch in 2018, BERT has aimed to stabilise the economy, lower public debt, and create the groundwork for long-term, inclusive growth.
Minister in the Ministry of Finance, Ryan Straughn, called the Moody’s announcement a “positive affirmation” of the government’s commitment to sound economic management. He highlighted sustained primary surpluses, reduced debt, and increased housing investment as key outcomes.
“There’s already growing investor interest in long-term government bonds, and we’re seeing a downward trend in interest rates alongside encouraging signs of job creation,” Straughn added.
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According to Professor Robinson, the upgrade puts Barbados in a better position to secure international financing for key infrastructure and climate resilience projects. It also enhances economic resilience by reducing the risk of sudden policy shifts that could disrupt everyday life.
“While a credit upgrade doesn’t solve every problem overnight, it strengthens our ability to plan, invest, and grow sustainably,” Robinson noted.
As Barbados continues to rebuild and modernise its economy, the Moody’s rating signals that the country is moving in the right direction—and that the benefits of reform are beginning to take hold.
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