The recent decision by Moody’s to upgrade the Maldives’ credit outlook to ‘stable’ offers relief to businesses, says Economic Minister Mohamed Saeed, adding that he sees promising days ahead.
Last week, the global credit rating agency Moody’s maintained the Maldives’ rating at Caa2, but upgraded the outlook from ‘negative’ to ‘stable’.
Addressing the 2025 Maldives MSME Awards on Friday night to celebrate the achievements of Micro, Small, and Medium Enterprises (MSMEs), Saeed described a bleak economic situation as the greatest challenge facing President Dr. Mohamed Muizzu’s administration when it took office in 2023.
Economic Minister Mohamed Saeed attends the MSME Award on November 29, 2025. (Photo/Economic Ministry)
He described the recent decision by Moody’s to upgrade Maldives’ credit outlook to ‘stable’ as one that offers relief to MSMEs and guarantees the businesses will be able to get the support they need.
“With the patience and wisdom that the President demonstrated as he worked with the finance minister, his team, and all economic sector stakeholders over the last two years, Moody’s has announced we have pushed through the bleakness and regained stability,” he said.
Economic Minister Mohamed Saeed attends the MSME Award on November 29, 2025. (Photo/Economic Ministry)
Saeed said that MSMEs have made gains the last two years, with the Business Center Corporation (BCC) providing MVR 50 million in support to over 400 businesses engaged in manufacturing and selling local products through Authentic Maldives.
He said he sees promising days ahead for the Maldives.
According to Moody’s, the shift from a ‘negative’ to ‘stable’ outlook reflects government reforms aimed at strengthening foreign exchange reserves and ensuring funds for debt servicing and imports. Despite a decline in reserves earlier in 2024, both the Monetary Authority of Maldives (MMA) and the Sovereign Development Fund (SDF) have since bolstered reserves. 
The MSME Award on November 29, 2025. (Photo/Economic Ministry)
Foreign exchange reserves stood at USD 859 million last month, covering about three months of imports, up from USD 364 million in September 2024. 
The SDF balance rose from USD 15 million last year to USD 126 million as of November 9, 2025. 
Moody’s noted that these improvements place Maldives in a stronger position to meet debt obligations, though the fiscal situation remains fragile. As a result, the rating stays at Caa2, which is considered a junk grade, reflecting high default risk.