Male’, Maldives – Member of Parliament for Mid Henveiru Constituency, Ali Azim has responded to Member of Parliament for Maradhoo constituency Ibrahim Shareef (Mavota), saying that Fitch does not rate a country based on what politicians in the country say.
Fitch Ratings Inc., downgraded Maldives’ long-term foreign-currency Issuer Default Rating (IDR) from ‘B’ to ‘CCC’ on the 5th of November.
Speaking on the matter, 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 told Parliament it was unwise to pass the decree in it’s current state, the very day it was passed.
Responding to these claims, MP Azim said that Fitch does not rate a country based on what politicians in the country say.”They change a country’s rating after investigating it’s economic state” MP Azim said.
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.”