Fitch downgraded Maldives' Long-Term IDR to 'CCC+' due to rising debt and dwindling foreign currency reserves.

Fitch downgraded Maldives' Long-Term IDR to 'CCC+' from 'B-', warning of potential sovereign default due to rising debt and dwindling foreign currency reserves. The tourist paradise faces severe stress from $409 million in debt servicing obligations this year, and external refinancing challenges in 2025 and 2026. Fitch cites President Mohamed Muizzu's reorientation of the atoll nation towards China as a contributing factor.

June 26, 2024
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