Fitch Ratings, one of the world’s largest credit rating agencies, has upgraded the Maldives’ Long-Term Foreign-Currency Issuer Default Rating (IDR) from ‘CC’ to ‘CCC-’.
Fitch said the upgrade follows the Maldives’ successful repayment of its sovereign sukuk that matured in April 2026, reducing concerns over a potential default and improving the country’s near-term financial outlook.
The rating action was announced in Fitch’s latest report released today.
According to Fitch, the repayment of the sukuk, one of the country’s largest external debt obligations, has significantly lowered economic and financial risks facing the Maldives.
The government welcomed the upgrade, describing it as recognition of efforts undertaken over the past year to strengthen public finances, improve debt management, increase state revenue and reinforce foreign exchange reserves through a series of economic reforms.
Fitch also noted that lower external debt repayments in the coming years, together with continued support from international partners, are expected to ease financial pressures and support the rebuilding of reserves.
The Ministry of Economic Development, Transport and Trade said the upgrade reflects growing international confidence in the Maldives’ economic direction and the administration’s reform programme. The ministry stated that measures introduced to improve fiscal sustainability, strengthen investor confidence and enhance economic resilience have contributed to the improved rating.
Economic Development Minister Mohamed Saeed also welcomed the development, describing it as an important milestone that acknowledges the government’s efforts to stabilise the economy and implement fiscal reforms during a challenging period. He said the upgrade demonstrates increasing confidence in the country’s economic fundamentals and long-term growth prospects.
The government reiterated its commitment to maintaining macroeconomic stability, strengthening public finances and continuing reforms aimed at safeguarding the economy from external shocks.
More details are expected to be released.
