Fitch revises Bangladesh view to negative

Fitch Ratings said it revised the outlook on Bangladesh's long-term foreign-currency issuer default rating to negative from stable and affirmed the IDR at BB-

The negative outlook reflects a deterioration in external buffers, which has increased vulnerability to shocks, Fitch said.

“It also reflects our view that the country's incremental policy response, including exchange-rate system changes, and continued support from external official creditors, has been insufficient to stem the fall in foreign reserves and resolve domestic U.S.-dollar liquidity strains,” Fitch said in a news release.

However, ratings are affirmed, reflecting Bangladesh's manageable external-debt repayment profile, still-favorable growth prospects and government debt that is below that of peers. This is balanced by low government revenue and per capita income as well as a weak banking sector and deficient governance indicators, the agency added.

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