Moody’s downgrades Maldives

Moody’s Investors Service said it downgraded the government of Maldives’ long-term local- and foreign-currency issuer and the foreign-currency senior unsecured ratings to B3 from B2.

“The drivers of the downgrade include Moody’s expectation that the ongoing shock to the tourism sector, precipitated by the global coronavirus outbreak, will significantly impair economic activity and raise government liquidity risks, exacerbating weak fiscal and external positions. Moreover, challenges to macroeconomic stability will persist given limited policy effectiveness and financial buffers to arrest a significant deterioration in credit metrics,” Moody’s said in a press release.

The outlook remains negative.

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