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 and Fitch Ratings 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 forecast the economy will expand by 7.2% in 2023 and average 6.6% in 2024-2025. 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. The report also forecasts challenges in obtaining external loans and other financing. The government has USD232 million in external debt-servicing obligations and USD298 million in publicly guaranteed obligations due in 2024.
The report stated that there are additional challenges ahead to increase the foreign exchange reserves of the Maldives. The reason is that the need to use US dollars for imports increases. Fitch said the economy of the Maldives is largely dependent on tourism, indicating the fragility of the economy.
The Fitch Ratings has been assessing the economic situation of the Maldives since 2017. The rating was upgraded from CCC to B-minus in 2021.