Maldives’ Credit Rating at B-,Outlook Negative, Says Fitch Ratings

Fitch Ratings affirmed Maldives' Long-Term Foreign-Currency Issuer Default Rating at 'B-' with a negative outlook. The rating reflects favourable GDP growth, high per capita GDP, and bilateral/multilateral support, balanced by high government debt, low foreign reserves, and vulnerability to shocks. The negative outlook indicates risks to external financing and liquidity strains. Foreign reserves fell by 16.6% to $694 million in August, with $100 million drawn from a $200 million swap with the Reserve Bank of India. External debt servicing is $232 million in 2024, rising to $363 million in 2025 and peaking at $887 million in 2026 including a $500 million sukuk. The current account deficit is expected to decline to 14% of GDP in 2024. Fiscal deficit is projected at 10.1% in 2024, and government debt is expected to rise to 101.7% of GDP by 2025.

Fitch Ratings affirmed Maldives' Long-Term Foreign-Currency Issuer Default Rating at 'B-' with a negative outlook. The rating reflects favourable GDP growth, high per capita GDP, and bilateral/multilateral support, balanced by high government debt, low foreign reserves, and vulnerability to shocks. The negative outlook indicates risks to external financing and liquidity strains. Foreign reserves fell by 16.6% to $694 million in August, with $100 million drawn from a $200 million swap with the Reserve Bank of India. External debt servicing is $232 million in 2024, rising to $363 million in 2025 and peaking at $887 million in 2026 including a $500 million sukuk. The current account deficit is expected to decline to 14% of GDP in 2024. Fiscal deficit is projected at 10.1% in 2024, and government debt is expected to rise to 101.7% of GDP by 2025.

Fitch Ratings affirmed Maldives' Long-Term Foreign-Currency Issuer Default Rating at 'B-' with a negative outlook. The rating reflects favourable GDP growth, high per capita GDP, and bilateral/multilateral support, balanced by high government debt, low foreign reserves, and vulnerability to shocks. The negative outlook indicates risks to external financing and liquidity strains. Foreign reserves fell by 16.6% to $694 million in August, with $100 million drawn from a $200 million swap with the Reserve Bank of India. External debt servicing is $232 million in 2024, rising to $363 million in 2025 and peaking at $887 million in 2026 including a $500 million sukuk. The current account deficit is expected to decline to 14% of GDP in 2024. Fiscal deficit is projected at 10.1% in 2024, and government debt is expected to rise to 101.7% of GDP by 2025.

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