Fitch rating downgrade due to Parliamentary decree : MP Shareef

Maradhoo MP Ibrahim Shareef | Photo: People's Majlis

Male’, Maldives – Member of Parliament for Maradhoo constituency of Addu City, Ibrahim Shareef (Mavota) has said today that the Fitch rating of Maldives decreased from ‘B’ to ‘CCC’ due to a recent decree passed by the Parliament.

The recent rating downgrade , which is the second such downgrade this year is justified by Fitch Ratings Inc to be the result of a “expectation of deeper and more prolonged external liquidity pressures than previously forecast, and a sharp increase in the country’s debt burden as a result of the coronavirus shock and continued debt-funded infrastructure spending.”

MP Shareef said on twitter that Fitch decreasing Maldives’ rating to ‘CCC’ is a direct result of a recent decree passed by Maldivian Parliament. Adding that he said told Parliament it was unwise to pass the decree in it’s current state, the same day it was passed.

He said that Parliament needs to be careful with some decree that they pass, cautioning that other international credit agencies may follow Fitch and lower Maldives’ ratings.

The Parliament has passed a report advising the government to immediately begin to work on to restructuring the massive debt of MVR 172 Billion amassed by previous governments between 2012-2018 .