Fitch upgrades Maldives to ‘CCC-’

Thursday, 4 June 2026 00:22 - - {{hitsCtrl.values.hits}}

Fitch Ratings has upgraded the Maldives’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC-’ from ‘CC.’ Fitch typically does not assign Outlooks to sovereigns with a rating of ‘CCC+’ or below.

The rating upgrade reflects Fitch’s assessment that default risks have eased following successful repayment of the Maldives’ sukuk issuance in April 2026.

Implementation of revenue-side reforms and the Foreign Currency Act could strengthen the Government’s capacity to generate foreign currency receipts. The sovereign’s reduced external debt servicing and continued access to bilateral and multilateral support should alleviate near-term liquidity pressures, and could support rebuilding of external buffers over time.

The ‘CCC-’ rating reflects external and fiscal vulnerabilities which are still high. The sovereign’s wide twin deficits, high public debt, and low reserve coverage are combined with significant exposure to the Iran-war energy shock and heavy dependence on tourism-related receipts.