📈 Fitch Upgrades Maldives to ‘CCC-’ as Default Risks Ease

Fitch Ratings has upgraded the Maldives’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC-’ from ‘CC’, following the successful repayment of its sukuk issuance in April 2026. • Key Drivers: The upgrade reflects eased default risks and reduced near-term liquidity pressures. Implementation of revenue-side reforms and the Foreign Currency Act are expected to strengthen the government's capacity to generate foreign currency receipts. Continued access to bilateral and multilateral support will also assist in rebuilding external buffers. • Remaining Vulnerabilities: Despite the upgrade, the ‘CCC-’ rating highlights that external and fiscal vulnerabilities remain high. The Maldives faces wide twin deficits, high public debt, and low reserve coverage. • Economic Risks: The economy remains heavily dependent on tourism-related receipts and is significantly exposed to external shocks, specifically the Iran-war energy shock.