The Fitch Ratings, an American credit rating agency, has dropped its initial ratings for Maldivian economic performance for the year 2020 in light of COVID-19 pandemic.
The sovereign credit rating of Maldives have been on an upward trend since 2016, while the rating agency had given a ‘stable’ outlook for the island nation for the previous two years.
With the viral pandemic drastically stalling all major economic components of the country, the rating agency has revised its issue rating to Maldives under ‘B’ classification and shifted the outlook to a ‘negative.’
Fitch speculates the island nation will face significant challenges in the ‘road to recovery’ in the aftermath of the pandemic. Additionally, it had reported Maldives will reportedly experience noticeable dents to its tourism sector.
The overall revenue of Maldives state is expected to, in turn, decrease, while the fiscal deficit against the country’s Gross Domestic Product (GDP) will hit from 5.1% to 12% in the current year.
So far the Maldivian economy received ratings from both Fitch and Moody’s.
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