Maldives President Mohamed Muizzu is in India, with a delegation of 50 state officials, to strengthen a long-standing comprehensive bilateral partnership with New Delhi. This is Muizzu’s first bilateral visit which comes in the backdrop of global agency Moody’s slashing Maldives credit rating.
Moody’s Downgrade Maldives’s Credit Rating
The island nation’s credit rating was downgraded to Caa2 from Caa1. Moody’s Ratings downgraded the long-term foreign currency-backed senior unsecured rating for Maldives Sukuk Issuance Limited to Caa2 from Caa1.
The agency attributed the downgrade to their assessment that default risks have risen materially as foreign exchange reserves have remained low with prospects for a sharp recovery relatively poor.
Muizzu was accorded a ceremonial welcome by India’s President Droupadi Murmu today. He said India is fully cognizant of Maldives’ fiscal situation. The Maldives President highlighted that India will always be ready to ease their burden and find better alternatives, and solutions to the challenges that Maldives face.
Also Read: India To Witness Steepest Rise In Cost Of Living In Near Future: FM Nirmala Sitharaman
Maldives Recognizes New Delhi as Key Hub for Trade
Muizzu highlighted that New Delhi is a frequent destination for Maldivian entrepreneurs. He aims to make India’s capital city a key hub for trade, enhancing business exchanges in trade, tourism, and other sectors.
A source says the Maldivian President is in India to secure a financial helpline in the form of grant-in-aid and restructuring debt repayments. It should be noted that Maldives has a public debt of $8 billion. It also owes $1.4 billion each to India and China.
Maldives has hit a roadblock with China because Beijing is not willing to defer its debt payments for five years. Muizzu is keen to make relations right with New Delhi, given that he started on the wrong footing with his anti-India campaign that resulted in low Indian tourists to the island nation.
