Shareef: Fitch downgrade caused by previous administration

Government spokesperson Mohamed Hussain Shareef (Mundhu) has stated that the recent downgrade of the Maldives' credit rating by Fitch Ratings was not caused by the policies of the current administration.

Shareef He made these remarks while responding to a question from a reporter during a press conference held on Saturday. Specifically, the journalist had inquired regarding the latest Fitch Ratings report.

In response to the question, Shareef stated that some individuals have gone as far as praying and making vows for the Maldives to go bankrupt, while the media has been promoting a "doomsday scenario." He further noted that if the country were to face bankruptcy, the consequences would extend far beyond the current administration.

It is noteworthy that this was a point raised by many even as the PNC conducted its "India Out" campaign during the presidential election. At the time, despite widespread warnings that such activities would damage the economy and foreign relations, those currently serving in the administration continued to defend their actions.

Although Fitch Ratings has upgraded the Maldives' Long-Term Foreign-Currency Issuer Default Rating (IDR) from 'CC' to 'CCC-', the rating remains lower than it was when the current administration took office.

Shareef stated that the downgrade in Fitch Ratings was not caused by the current administration's policies. Elaborating on the rating, he further noted that since its inception, the government has been working to settle inherited debts and strengthen the economy. Shareef added that the improvement in the Maldives' credit rating from CC to CCC was a direct result of the government's efforts, and emphasized that the administration's objective remains to further enhance these ratings.

The decline was not a result of this administration's policies. Rather, it was due to the level of debt we inherited, the obligations we were forced to fulfill, and the sheer scale of the measures we were compelled to implement.

Government Spokesperson Mohamed Hussain Shareef (Mundhu)

Shareef stated that an improvement in Fitch Ratings would shift the perspective of development partners toward the Maldives and its economy. He further noted that this would attract additional investments to the country, adding that fireworks would be set off once these developments begin to materialize.

Criticizing Fitch Ratings' recent assessment, former President Abdulla Yameen described the situation as nothing more than a dying patient blinking their eyes in a final struggle. Responding to these remarks, Shareef stated that even a blink of the eyes represents a sign of progress.

When the new administration took office in 2023, the Maldives' credit rating was in a stronger position than it is today. Consequently, many are calling on the government to implement robust measures to restore the country's Fitch rating to its previous standing.