The ruling People’s National Congress (PNC) has welcomed Fitch Ratings’ decision to upgrade the Maldives’ sovereign credit rating from CC to CCC-, describing it as a clear endorsement of the fiscal and economic policies implemented by President Dr. Mohamed Muizzu’s administration.
In a statement issued on Wednesday, the PNC said the country faced significant financial challenges when President Muizzu assumed office, including record levels of debt and growing concerns over the Maldives’ ability to meet its external debt obligations. According to the party, these concerns had previously led to credit rating downgrades and made access to international financing increasingly difficult.
The PNC stated that improving the country’s financial position and restoring confidence among international financial institutions and investors became one of the administration’s top priorities from the outset.
According to the party, several key measures were introduced under President Muizzu’s leadership to strengthen the country’s financial resilience. Among them was the implementation of a new foreign exchange framework requiring a portion of earnings from tourism and other foreign currency-generating sectors to be channelled through the domestic banking system, helping to boost the nation’s official foreign currency reserves.
The party also highlighted the decision to resume building foreign currency reserves in the Sovereign Development Fund (SDF). As a result, when the Maldives’ USD 500 million sovereign sukuk matured in April, official reserves had reached USD 1.3 billion, while USD 320 million had been accumulated in the SDF.
The PNC noted that the government successfully settled the USD 500 million sukuk without taking on additional borrowing. It further pointed out that the state independently repaid USD 400 million from a currency swap arrangement with the Reserve Bank of India and met a USD 50 million repayment due in April from a USD 200 million loan obtained from India in 2019.
The party said these achievements demonstrated the effectiveness of the government’s fiscal management and contributed directly to Fitch’s decision to raise the country’s rating.
“This upgrade is clear evidence of the confidence that international financial institutions and partner countries have in the Maldives’ fiscal health and the government’s economic policies, even amid ongoing global economic uncertainty,” the PNC said.
The ruling party added that the rating improvement reaffirms the success of President Muizzu’s efforts to strengthen economic stability, improve debt sustainability, and steer the country towards long-term financial resilience and growth.
