Fitch Ratings, one of the world's largest credit rating agencies, has maintained its B-minus rating for the Maldives. Fitch Ratings maintained the B-minus rating after assessing the economic situation of the Maldives.
Moody's Investors Service (Juice) and Fitch Ratings (Fitch) are tasked with assessing and preparing the credit rating of the Maldives. The two companies visit the Maldives every year to meet with relevant offices and foreign stakeholders in addition to assessing publicly available statistics and information.
The Fitch Ratings affirmed its B-minus rating for the Maldives due to the rapid growth of the tourism industry. Fitch forecasts the economy will grow by 9.5% in 2022 and the economic growth will remain robust and average above 7.5% from 2023-2024. The Fitch Ratings highlighted its baseline expects annual tourist inflows to return to the pre-pandemic level this year on strong arrivals from India, Europe, and the Middle East.
In addition to economic growth, the Fitch report also highlights the challenges facing the Maldivian economy such as a sharp decline in foreign-exchange buffers and an increase in outstanding debt.
Speaking at a press conference held at the President’s Office, Minister of Finance Ibrahim Ameer stated that the economic situation of the Maldives is better than previously expected, and there is no concern that the country will not be able to pay its debts. He also highlighted the reports published by international financial institutions about the Maldives and stated that the country maintained its status in the Fitch Rating report. He also noted the administration’s plans for the next year include managing the state budget without depending on foreign grants.