State of the Bangladesh Economy in FY2023-24 (First Reading)
Independent Review of
RBD
Bangladesh's Development
Debt Servicing: An emergent concern
Table 5.6: Bangladesh's credit ratings by major rating agencies have been downgraded
Agency
Reasons
Previous
Rating
When
Moody's Baz
New
changed Rating
30-May-23 B1
S&P
BB- Stable
24-Jul-23 BB-
Negative
Fitch
BB-Stable
25-Sep-23 BB-
Negative
Moody's assessment is that Bangladesh's heightened external
vulnerability and liquidity risks are persistent, and that, in the
backdrop of institutional weaknesses, the situation could
deteriorate over the near term.
The downgrade stems from growing concerns that the country's
external liquidity position might worsen over the next year, and
its foreign exchange reserves may remain under pressure.
This decision is attributed to the country's dwindling reserves
and tightening dollar liquidity which have heightened its
susceptibility to economic shocks
Source: Extracted from Trading Economics (2023).
☐ Key credit rating agencies have downgraded credit rating for Bangladesh in the recent past.
➤ Going forward, this could lead to higher borrowing costs, both for public sector
borrowings, for raising funds through issuance of sovereign borrowings as also for
private sector borrowings from the international financial market.
CPD (2023): State of the Bangladesh Economy in FY2023-24 (First Reading)
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