Moody’s has maintained the Maldives’ credit rating at CAA2, according to the agency’s latest periodic review.
The review stated there was no need to change the current rating, noting that the post-COVID economic slowdown is stabilizing, tourism is recovering, and the country’s outlook for competitiveness and growth remains positive.
Moody’s also highlighted an increase in foreign exchange reserves since October. This improvement is attributed to assistance from foreign financial institutions, reforms in forex policy, and the implementation of revenue-generation measures.
However, the agency noted that the Maldives’ most significant challenge remains repaying external debt, including a \$500 million sukuk due in 2026. The country continues to face difficulties securing financing from international markets.
Moody’s said an upgrade in the Maldives’ credit rating would depend on the successful completion of fiscal reforms and the government's ability to secure funds to meet its external obligations. The agency’s decision comes as the government implements measures to revive the economy.
The review stated there was no need to change the current rating, noting that the post-COVID economic slowdown is stabilizing, tourism is recovering, and the country’s outlook for competitiveness and growth remains positive.
Moody’s also highlighted an increase in foreign exchange reserves since October. This improvement is attributed to assistance from foreign financial institutions, reforms in forex policy, and the implementation of revenue-generation measures.
However, the agency noted that the Maldives’ most significant challenge remains repaying external debt, including a \$500 million sukuk due in 2026. The country continues to face difficulties securing financing from international markets.
Moody’s said an upgrade in the Maldives’ credit rating would depend on the successful completion of fiscal reforms and the government's ability to secure funds to meet its external obligations. The agency’s decision comes as the government implements measures to revive the economy.
