International credit rating agency Fitch Ratings has maintained the Maldives’ credting rating at ‘CC’, signalling continued high risk of debt default.
The agency noted the significant debt servicing obligations the Maldives faces in the second half of this year and in 2026.
According to Fitch, the country is required to repay USD 688 million in the remaining months of 2025, and USD 1.1 billion in 2026. The retained 'CC' rating reflects the vulnerability of the country’s fiscal and external positions.
Fitch had previously downgraded Maldives’ rating twice in 2023: first in June, from ‘B-’ to ‘CCC+’; then again in August, to the current ‘CC’ level.
In its latest report, Fitch emphasized that the government’s usable reserves are just USD 28 million, excluding the USD 400 million currency swap provided by the Indian government.
The agency also pointed out the difficulty in refinancing debt and attracting foreign funding. Fitch expects the budget deficit to grow due to delays or inaction on planned austerity measures. It forecasts that the government’s direct debt will rise to 125% of GDP, up from 114.5% this year.
In addition to Fitch’s assessment, Moody’s, another major rating agency, maintained its own 'junk' rating on May 16, assigning the Maldives a Caa2 rating, a non-investment grade.
Moody’s cited the government’s lack of concrete measures to stabilize the country’s finances as the reason for maintaining its negative outlook.
