Fitch upgrades Maldives to ‘CCC-’ after sukuk payment

Jun 4, 2026, 7:47 AM
Finance Minister Moosa Zameer. -- Photo: People's Majlis

Finance Minister Moosa Zameer. -- Photo: People's Majlis

Fitch Ratings, the U.S.-based credit rating agency, has upgraded the Maldives' credit rating to "CCC-".

The rating was upgraded due to the reduced risk of a sovereign default following the successful settlement of the country's sukuk obligations.

The globally recognized agency noted that the full implementation of revenue-side reforms and foreign exchange regulations would provide the Maldives with further opportunities to bolster its foreign currency reserves.

Fitch highlighted that, following the sukuk repayment, continued support from friendly nations would alleviate short-term debt burdens and facilitate the accumulation of foreign exchange.

However, the agency emphasized that the Maldives still faces significant financial challenges. These include high domestic debt, inadequate reserves, and a potential decline in tourism revenue due to regional geopolitical tensions.

Finance Minister Moosa Zameer played a key role in managing the sukuk repayment and improving the nation's fiscal standing. His efforts were instrumental in ensuring the payment was met despite the sudden challenges posed by international conflicts.

Fitch had previously downgraded the Maldives' credit rating to "CC" in August 2024. At that time, the country faced a deteriorating financial situation compounded by ineffective fiscal measures.

Following a review of the situation in June 2025, Fitch had initially maintained the lower rating before yesterday's upgrade.

Comments

Read More

Latest News

Moody’s upgrades Maldives credit rating to Caa1

Moody’s has upgraded the Maldives' credit rating from Caa2 to Caa1 with a stable outlook, citing a reduced risk of default after successful debt payments. While the upgrade restores the rating to previous levels, the agency warns of a rising budget deficit and a high debt-to-GDP ratio that remains above 100 percent.

Board appointed for new Awqaf Investment company

The Maldives has formed the board for Maldives Awqaf Investment, a new state-owned enterprise led by Chairperson Izzuddin Adnan. The company will manage mosque construction, renovations, and waqf property development through Shari’ah-compliant activities. It holds an authorized capital of MVR 100 million to ensure project sustainability.

Government revenue exceeds MVR 30 billion

The Maldivian government’s revenue surpassed MVR 30 billion, marking a slight increase over last year despite a slowdown in tourism-related tax growth. While tax revenue rose to MVR 23.8 billion, non-tax revenue saw a decline. Economic experts link the stagnation to a cooling tourism sector, which may impact year-end budgetary targets.

TGST declines due to low tourist arrivals

Maldives' state revenue is declining as Tourism Goods and Services Tax collections fell by MVR 110.5 million due to a drop in visitor arrivals. Disruptions in Middle Eastern air travel have slowed tourism momentum since the second quarter. It is now unlikely the country will meet its annual target of 2.4 million tourists.

Authorities meet with tourism industry stakeholders

Government officials and tourism stakeholders met to discuss taxing foreign tour operators and booking platforms. The proposed legislative changes aim to generate MVR 1.6 billion in annual revenue by levying TGST on offshore services. While the government reports progress, industry leaders remain concerned about the impact on the sector.

Former MP ousted over debt appointed Managing Director of AgroNat

Mohamed Sinan, a former MP who lost his seat over an unpaid debt, has been appointed Managing Director of Agro National Corporation. The appointment follows AgroNat’s restructuring as a MIFCO subsidiary. Additionally, MIFCO's Managing Director, Mohamed Anas, has been named Chairperson of the corporation.

MIB to fund MVR 500,000 project for Guesthouse Champion island

Maldives Islamic Bank will award an MVR 500,000 community project to the winner of the "Guesthouse Champion" title at its upcoming symposium on October 15. The winning island can propose a project to benefit both locals and tourists. This initiative aims to enhance community well-being and local tourism infrastructure.

Newsletter

Get the latest news delivered straight to your inbox