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Announcement of Periodic Review: Moody’s announces completion of a periodic review of ratings of Maldives, Government of

Moody’s Investors Service (“Moody’s”) reviews all of its ratings periodically in accordance with regulations — either annually or, in the case of governments and certain EU-based supranational organisations, semi-annually. This periodic review is unrelated to the requirement to specify calendar dates on which EU and certain other sovereign and sub-sovereign rating actions may take place.

Moody’s conducts these periodic reviews through portfolio reviews in which Moody’s reassesses the appropriateness of each outstanding rating in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1st January 2019, Moody’s issues a press release following each periodic review announcing its completion.

Moody’s has now completed the periodic review of a group of issuers that includes Maldives and may include related ratings through a discussion held on 17 May 2021. The review did not involve a rating committee, and this publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future; credit ratings and/or outlook status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on for the most updated credit rating action information and rating history.

The credit profile of Maldives (issuer rating B3) incorporates the sovereign’s “ba3” economic strength assessment, taking into account the economy’s relatively weak global competitiveness outside of the tourism industry, as well as incorporating the possibility of significant economic loss stemming from Maldives’ exposure to natural disasters and climate change, particularly given the economy’s reliance on natural assets-based tourism; its “b3” institutions and governance strength, which incorporate the challenges associated with developing institutional quality in a small island nation, and capacity constraints to fiscal and monetary policy effectiveness; its “b1” fiscal strength, which takes into account a rapidly increasing debt burden and anticipated deterioration in debt affordability in the coming years, as well as the contingent liability risks posed to the government’s balance sheet from government guaranteed debt; and its “b” susceptibility to event risk, driven by government liquidity risk. This assessment incorporates our expectation of a sharp rise in the government’s gross borrowing needs, as well as intermittent access to external financing through a relatively narrow range of investors and a variety of official lenders.

This document summarizes Moody’s view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.

This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings. Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on for the most updated credit rating action information and rating history.

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