CMDA: Efficiency of institutions vital to improve credit rating

Capital Market Development Authority has stressed the importance of improving State expenditure and debt, and national-level reform efforts to increase the efficiency of institutions in order to improve the country’s credit rating.

The country’s credit rating was evaluated and published for the first time in its history by Moody’s Investors Service last Saturday.

Moody’s gave Maldives a “B2” rating, meaning that the economy is judged to be highly speculative and a high credit risk.

The rating is determined after evaluating factors such as the economic status of the country, efficiency of the country’s institutions and State expenditure, national debt and internal stability of the country.

CMDA, an independent institution responsible for developing and regulating the capital market and pension industry of Maldives released a press statement in which it noted the country’s credit rate being published as an important milestone in increasing the efficiency of Maldivian finance sector.

It also stressed the importance of national-level reforms in order to build up the rating.

CMDA noted in their statement that was one of their key objectives to develop a bond market in the country that both foreigners and locals can invest in, and that the country’s credit rating being published put them one step closer towards achieving the objective.

According to economists who spoke to “Sun”, getting the credit rating published proved the credibility of reliability of information available regarding the Maldivian economy to people who may be undecided about investing in Maldives.