The Maldives has received a sovereign credit rating upgrade from international rating agency Moody’s Ratings, with the country’s rating raised from Caa2 to Caa1, reflecting improvements in fiscal management, debt repayment capacity and the implementation of government economic policies.
Minister of Finance and Public Enterprises Hassan Zareer welcomed the upgrade, describing it as recognition of the effectiveness of policies implemented under the leadership of President Dr Mohamed Muizzu.
“I am pleased to announce that Moody’s Ratings have announced their rating upgrade of the Maldives’ Sovereign Credit rating from ‘Caa2’ to ‘Caa1’,” Minister Zareer said.
The minister said the improved rating demonstrates the progress achieved through the government’s economic and fiscal measures, while reaffirming the administration’s commitment to maintaining macroeconomic stability and protecting vulnerable groups during a period of continued uncertainty in the global economy.
According to Moody’s, the rating upgrade reflects progress in implementing government policies, improvements in the country’s debt repayment position and measures introduced to strengthen fiscal security. These developments have contributed to reducing the risk of near-term debt repayment difficulties and improving confidence in the Maldives’ financial outlook.
Official figures from the Ministry of Finance also indicate an improvement in the country’s debt position. Government debt stood at 129.2 per cent of gross domestic product at the end of 2025, before declining to 122.6 per cent of GDP by the end of July 2026.
The Ministry of Finance has attributed the reduction to continued debt repayments alongside prudent fiscal policies aimed at strengthening public finances and improving the sustainability of government debt.
The credit rating upgrade provides a positive signal for the Maldives’ broader economic outlook and international financial standing, particularly as the government continues its efforts to strengthen fiscal resilience, maintain investor confidence and ensure sustainable economic growth.
The government has reiterated that it will continue implementing measures to safeguard economic stability, strengthen public finances and protect the country from external economic pressures while supporting the long-term development of the Maldives.
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