Credit rating agency Fitch has acknowledged the government's positive steps to improve the Maldives' financial situation. Fitch has changed the Maldives' financial rating from B-minus to CCC-plus.
This change is primarily due to increased constraints on external financing. However, Fitch noted that if the government implements effective debt management measures, the financial situation is expected to improve further, potentially leading to a higher financial rating. The agency also highlighted the government's efforts to diversify the economy and build a sustainable financial framework, which will contribute to long-term stability.
Fitch emphasised that the government's financial outlook will improve with the measures currently being implemented. The government is actively working to reduce expenditure and increase revenue. Additionally, there will be no delays in repaying debts owed by the Maldives to various creditors.