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Moody’s Ratings has upgraded the Maldives’ credit rating from Caa2 to Caa1 with a stable outlook, citing reduced risks of near-term debt default following major loan repayments and foreign exchange reserve growth.
News Desk
MALE : Moody’s Ratings has upgraded the Maldives’ sovereign credit rating from Caa2 to Caa1, assigning a stable outlook to the country’s financial trajectory.
The Finance Ministry announced that the rating upgrade reflects significantly reduced risks of near-term debt default and increased confidence in national fiscal policies.
Moody’s highlighted several major debt settlements achieved by the government, including the full repayment of a $500 million Sukuk in April and the settlement of a $400 million currency swap facility with India. Additionally, authorities settled $100 million in Indian treasury bills across May and September, while successfully extending a $100 million Eurobond maturity to 2031.
The agency attributed the positive outlook to strengthened foreign exchange reserves, increased deposits in the Sovereign Development Fund, and reliable financial support from neighboring nations and international institutions. Foreign exchange reforms introduced in 2024 have further increased foreign currency inflows into the domestic banking system.
Finance Ministry statistics show that total public debt dropped from 129.2 percent of GDP at the end of 2025 to 122.6 percent by July. The ministry reaffirmed its commitment to maintaining fiscal discipline within budget limits while monitoring external risks such as Middle Eastern tensions and rising energy prices.
