Moody’s has upgraded the Maldives’ sovereign credit rating from Caa2 to Caa1 with a stable outlook, citing the government’s ability to meet large external debt payments and measures that have improved foreign-currency capture.
The upgrade follows the settlement of significant obligations, including a $500 million sukuk and a $400 million currency-swap facility. External debt has fallen from $2.8 billion (35 percent of GDP) at the end of 2025 to $2.4 billion (30 percent of GDP) by the second quarter of 2026. Remaining payments this year stand at about $411 million, with next year’s burden around $428 million.
Moody’s attributed much of the improvement to foreign-exchange regulations introduced in late 2024 and 2025 that require tourism earnings to be deposited and converted through domestic banks, together with the collection of certain tourism taxes in foreign currency. Reserves had risen to $1.3 billion before major repayments.
Public and publicly guaranteed debt stood at 122.6 percent of GDP at the end of July 2026, down from 129.2 percent at the end of 2025. The Finance Ministry described the upgrade as an important milestone in rebuilding the country’s credit standing.