Fitch downgrades Maldives

Fitch Ratings said it downgraded the Maldives’ long-term foreign-currency issuer default rating to CCC from B.

The downgrade to CCC reflects the forecast of deeper and more prolonged external liquidity pressures than previously expected and a sharp increase in the country’s debt burden due to the coronavirus shock and continued debt-funded infrastructure spending, Fitch said.

“In recent months, the authorities have succeeded in securing new external financing, but foreign-currency buffers remain low, and it will be difficult for the Maldives to generate foreign-exchange inflows without normalization of tourist activity,” the agency said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.