I’ve seen many posts from @MMuizzu cabinet & political appointees praising him for Fitch credit rating upgrade, as though he personally made the repayment from his own bank account. However reality is very different from what they are claiming.
Please watch this video.
For a country, company, or bank rated CCC-, Fitch is essentially saying:
•It is still meeting its debt obligations for now.
•Its financial position is very weak.
•It depends heavily on favorable economic conditions, refinancing, external support, or new funding.
•There is a significant possibility of debt restructuring or payment problems in the future.
What it means for Maldives
A CCC- rating generally means:
•International lenders view the country as high risk.
•Borrowing money from international markets becomes expensive.
•Investors demand higher interest rates.
•The government needs continued economic growth, tourism revenue, and financing support to strengthen its position.