The top global credit rating agency, Fitch Ratings has downgraded the Maldives’ credit rating from ‘CCC+’ to ‘CC’, marking the second ratings downgrade for the island nation in 2024.
Fitch announced the downgrade in the Long-Term Foreign-Currency Issuer Default Rating (IDR) for the Maldives in a statement on Thursday.
In it Fitch highlights the key factors to this downgrade includes an increased risk of default, declining gross foreign exchange reserves, surging external debt, public debt vulnerabilities, and uncertainties tied to the state’s medium-term fiscal plan.