Fitch maintains credit rating of Maldives at B+

Credit rating agency Fitch has maintained the B-plus rating given to Maldives.

Maldives sought a credit rating from the Hong-Kong agency in 2017 ahead of a move to sell US$200 million worth of sovereign bonds. The B-plus rating issued then has been maintained this year.

In a statement released by Fitch, the agency said that the rating was maintained as they believe the country has the capability to overcome the negative outcomes of increasing debt and the decreasing foreign currency reserve.

“The 'B+' rating balances the Maldives' strong GDP growth, high government revenue generated by a prosperous tourism sector and some favourable structural indicators, such as per capita GDP, against a high government debt burden and low foreign-reserve buffers”, said the statement.

In the first credit rating assigned to Maldives in its history, one of the top three rating agencies in the world, Moody’s Investment Service assigned a “2B” credit to Maldives in 2016.

The debt report on the last quarter of 2018 issued by Ministry of Finance states that the national debt has increased to MVR 18.2 billion between 2016 and 2018, with a foreign debt of MVR 20 million. Internal debt had increased to MVR 27 billion during the period.