Moody’s Investment Service has said that even though the debt of Maldives is increasing due to the increased number of developmental projects, Maldives has the capacity to repay loans.
Moody’s revealed this in their sovereign credit rating report on the Maldives. Sovereign credit rating reports show the financial and economic status of a country. Moody’s is one of the largest credit rating agencies in the world. This is the first ever credit rating report on the Maldives.
The report has given B-2 rating to Maldives. This rating was given to Maldives after forecasting that the economy of Maldives will develop at a moderate level due to the tourism industry. The report also highlighted the importance of economic diversification to further develop the economy. It further said that the economic reforms brought by this government shows a promising future for the Maldivian economy.
Finance Ministry of the Maldives have said that; Maldives was given a B-2 rating by Moody’s after an in depth analysis of the country’s finances. They also said that because of this rating, private businesses will get financing easily and with a reduced cost. In addition, financial instruments like bonds and Sukook will get credit ratings and these markets will get finance from international markets.
Maldives has the capacity to repay loans: Moody’s report
