The US based credit rating agency, Fitch Ratings have slashed their initial ratings for Maldivian economic outlook for the year 2020 in light of the viral COVID-19 pandemic.
Maldives observed a hiking trend on the sovereign credit rating since 2016, and thus marks the first bump since the trend. Additionally, Fitch gave a 'stable' outlook for the previous two years.
The global pandemic, which has reached the island nation as well, have drastically stalled on the overall economic growth and performance of Maldives.
With the global aviation industry hitting a limbo, thus dropping on new tourist arrivals to Maldives coupled with its government announcing travel and arrival restrictions on 11 major destinations further throttled the economy.
The island nation's tourism sector, which remains as it most significant economic component, have come to a standstill with as many as 50 tourist resorts announcing temporary closure until further notice.
Meanwhile, Fitch has revised their initial scores to Maldives and amended the country's economic performance under 'B' classification and shifted the outlook to 'negative.'
Fitch further speculates the aftermath of the current economic regression will impact even further on the country's overall economic growth.
Maldives state revenue is expected to drop, while the fiscal deficit against the country's Gross Domestic Product (GDP) will adversely increase from 5.1% to 12%.
