Fitch Cuts Bangladesh Deeper Into Junk on Weak External Buffers
- Foreign reserves fell 15% from January to $18.4 billion: Fitch
- Unclear if crawling peg supports FX reserves build-up: Fitch
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Fitch Ratings downgraded Bangladesh’s sovereign rating on Monday, citing sustained weakening of the country’s external buffers, which risks making the South Asian nation more vulnerable to shocks.
Fitch cut the country’s credit score to B+ from BB-, sending it deeper into non-investment grade, or junk, territory, with a stable outlook. That’s in line with Turkey, Tanzania and Rwanda.