Moody’s has upgraded the Maldives’ credit rating from Caa2 to Caa1 and raised the country’s outlook to stable.
Moody’s said the decision follows a significant reduction in the risk of default in the near future, after the government repaid major debts and took steps to secure financial stability.
The Finance Ministry said the main reasons for the upgrade include the repayment of a USD 500 million sukuk, a USD 400 million currency swap facility and USD 100 million in treasury bills. Extending the maturity of a USD 100 million Eurobond to 2031 and securing USD 130 million in assistance from international financial institutions also helped ease financial pressure.
Official reserves and the Sovereign Development Fund have grown under foreign currency measures implemented since 2024, while public debt fell from 129.2 percent of GDP at the end of 2025 to 122.6 percent by July 2026. The government said it will prioritise keeping state spending within the budget while remaining mindful of the challenges posed by rising global energy prices.
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