Moody's maintains B-negative credit rating on Maldives

Moody's Investors Service - one of the largest rating firms internationally - has maintained it's 'B-negative' outlook on Maldives' issuer ratings.

The third sovereign credit rating issued by Moody's on August 27 said Maldives government's borrowing needs is expected to increase with several projects in the pipeline for the upcoming year. However, economic growth is likely to remain strong supported by strong tourism arrivals

The new credit rating issued by Moody's noted the changes being brought about by the new government, highlighting the government's focus on strengthening institutions, improving the rule of law and press freedom, and enhancing the economy's competitiveness and diversification.

Moody's first rated Maldives during 2017. While a "B2" rating was given at the time, they reviewed their rating from stable to "B Negative" due to liquidity and external vulnerability risks stemming from a sharp rise in the government's debt burden. Moody's said they expect the debt burden to remain until the beginning of the next decade when a large scale infrastructure program is scheduled to complete.

The previous government initiated seeking credit rating for Maldives in order to increase investor confidence in Maldives. Top two rating agencies, Moody's Investor Service and Agency Fitch Rating were tasked with rating the archipelago. The latest rating issued by Fitch ranked Maldives at B-plus.