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.
