It comes as no surprise that Moody's Investors Service has slashed its rating of the Caribbean Development Bank (CDB) from AAA to AA1 and Standard & Poor's has issued warnings of growing debt concerns in the Caribbean region.

What is surprising is that this rating was not lower given the sovereign debt and economic performance issues in the region following the collapse of Stanford's empire, IMF country management and the on-going spectre of more expropriation of foreign-owned property.

The financial ministers of Antigua & Barbuda would like to pretend that this is an external matter that will have little consequence. The reality, however, will undoubtedly be reflected in higher borrowing costs for any development in Antigua and the wider Caribbean region, with greater risk adversity and increased investor reluctance.

Whilst Antigua & Barbuda has never had a credit rating of its own, because its lacks the political will and declines the light of scrutiny on its financial affairs, Moody's action signals a growing impatience amongst investors to tolerate risk without transparency and adherence to accepted good international practise.

In fact, it is precisely reasons such as Antigua's serious shortcomings that negatively influence the confidence of depositors and investors in the Caribbean Development Bank itself, resulting in reduced capital to lend to these higher risk zones and nations.

The spiral, if unchecked, becomes self-perpetuating

Dr Warren Smith, President of the Caribbean Development Bank informed his board of governors that the downgrade was not surprising in today's "environment of uncertainty".

Adding, "We are undertaking an in depth examination of our risk management framework and we will implement appropriate recommendations as we build resilience to the more dangerous world which we now occupy."

Time will tell if the officers of CDB will make Antigua's future access to capital more contingent on economic prudence and adherence to constitutional commitment, in order to ensure its own survival and ability to lend to the other, more responsible nations in the Caribbean.

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