Government Spokesperson Mohamed Hussain Shareef has said the downgrade of the Maldives' credit rating was driven by the country's debt burden and borrowing practices rather than expenditure incurred during the COVID-19 pandemic.

Speaking at the Presser with the Spox today, the spokesperson said the Maldives received significant amounts of grant assistance and concessional financing during the pandemic, while the proportion of Government debt directly linked to COVID-19-related activities remained relatively small. He made the remarks in response to questions about whether funds raised through sovereign sukuk issuances and other borrowing were used to support the economy during that period.

The Spokesperson said the challenges that affected the country's credit rating stemmed from the level of debt inherited by the current Administration, the structure and timing of repayments, and the measures required to manage those obligations. He noted that the Government had identified major debt repayment challenges, particularly in 2026, and had undertaken negotiations with foreign partners to defer some repayments while continuing to meet other debt obligations.

The spokesperson also argued that concerns surrounding the Maldivian economy during the pandemic were linked more closely to fiscal policies than to pandemic-related spending itself. He said large amounts of debt were accumulated despite warnings from opposition figures and international financial institutions against policies such as extensive money printing.

Referring to Fitch Ratings' recent decision to upgrade the Maldives' credit rating, the Spokesperson described the move as a significant achievement but said the Government's greater success lay in managing expenditure within the approved budget and avoiding the need for a supplementary budget. He added that improved State revenues and ongoing fiscal reforms had contributed to strengthening confidence in the country's economic management.