Economic reform actions will have positive impact on credit rating: Finance Ministry

Ministry of Finance has said that Fitch Ratings downgraded the credit rating for Maldives' based on challenges faced in seeking foreign assistance for this year's budget deficit. The Ministry, however, assured that the necessity to seek foreign aid can be reduced through the economic reform actions that they plan to implement.

One of the largest global credit rating agencies, Fitch Ratings, downgraded the Maldives' rating this year to CCC+ rating.

While Fitch Ratings project that the incumbent government will decrease foreign loans, they add that Maldives faces significant challenges in debt repayment in 2025 and 2026. While MVR 9 billion needs to be repaid next year, the amount is at MVR 15 billion for 2026.

In a statement released by the Ministry of Finance, they highlighted that Fitch Ratings, too, had noted that the economic reform actions that the government plans to implement currently will lower the need to seek external aid.

It further said that there is a high possibility of an increase in the credit rating once these actions are taken and the capacity to manage State debt is strengthened.

Fitch Ratings further estimates that debt level will rise to 17 percent of GDP in 2026.

Ministry of Finance assured that they will remain dedicated to taking measures to improve the economic situation of the country, and will complete repayment of State debts.

Fitch downgrades Maldives' credit rating

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