Minister of Economic Development and Trade Mohamed Saeed has stated that the upgrade of the Maldives' credit rating by Fitch Ratings is a positive outcome of the fiscal reforms being implemented by President Dr. Mohamed Muizzu.

Fitch upgraded the Maldives' rating yesterday from "CC" to "CCC-". The agency revealed that this change follows the settlement of the USD 500 million sukuk payment due this past April, which has reduced the risk of the country defaulting.

Commenting on the matter, Minister Saeed stated that this progress is a result of the robust measures being taken by the government to boost the economy. The minister noted that Fitch's report also highlighted revenue-enhancing reforms and the new foreign exchange regulations, which are increasing the amount of dollars received by the state.

Furthermore, criticizing the debt policies of the previous administration, Saeed stated that the downturn faced by the financial system was caused by money printing and taking out loans at high interest rates without an adequate debt repayment plan. However, he emphasized that the current administration's focus remains on establishing economic stability and managing debt.

Despite the rating upgrade, Fitch pointed out that the Maldivian economy still faces challenges. In this regard, the agency noted that high state expenditure, low foreign currency reserves, and heavy reliance on tourism pose ongoing risks.

Nevertheless, the government believes that these challenges can be overcome through increased revenue from the tourism sector and external assistance. Minister Saeed reiterated that, unlike the fiscal track record of the opposition, this administration prioritizes creating avenues for sustainable revenue growth.