With the Moody's upgrade, the Ministry of Finance and Public Enterprises said in a statement on October 8, 2026, that the main reasons for the upgrade include the repayment of USD500 million in sukuk in April this year and the repayment of a USD400 million currency swap facility.
Daily Times
Moody's has upgraded the country's credit rating from 'Caa2' to 'Caa1' and changed the economic outlook to 'stable'. The move follows significant reductions in near-term default fears, along with measures taken to ensure financial security by paying down significant government debt, the Moody's report noted.
With the Moody's upgrade, the Ministry of Finance and Public Enterprises said in a statement on October 8, 2026, that the main reasons for the upgrade include the repayment of USD500 million in sukuk in April this year and the repayment of a USD400 million currency swap facility. Treasury bills totalling USD100 million were paid in September. In addition, the extension of a USD100 million eurobond to 2031 has also reduced the debt repayment constraints in the near future, the Finance Ministry said.
Moody's noted the country's strong foreign exchange reserves, increased deposits in the Sovereign Development Fund and confidence in financial assistance from foreign financial institutions and neighbouring countries. The agency also acknowledges the strength of government policies in achieving these improvements.
The foreign exchange measures, which has been implemented starting from 2024, have increased the inflow of foreign exchange into the banking system and the holdings of the official reserves and the Sovereign Development Fund, Moody's said. Furthermore, the Ministry also stated that these measures and the reduction in expenditure on external debt will further sustain the Maldives' financial situation.
According to the Ministry of Finance, the Maldives' financial prosperity has been further strengthened by the assistance received from international financial institutions. The government has secured a total of USD130 million, including USD40 million from the World Bank, USD50 million from the Asian Development Bank and USD40 million from the OPEC Fund.
According to the ministry, the government debt has declined to 122.6 percent of GDP by July 2026 from 129.2 percent. The Ministry noted that this is the result of debt repayment efforts and strong fiscal policies.
While focusing on the potential challenges posed by conflict in the Middle East and rising energy prices, the government is focused on protecting people’s basic needs, supporting economic activity and keeping public expenditure within budget, the finance ministry said in a statement.
