THURSDAY, March 28, 2024
nationthailand

Slow development a factor in S&P sovereign credit ratings on Bangladesh

Slow development a factor in S&P sovereign credit ratings on Bangladesh

S&P Global Ratings has affirmed its “BB-” long-term and “B” short-term sovereign credit ratings on the People's Republic of Bangladesh. The outlook remains “stable”. The transfer and convertibility (T&C) assessment remains “BB-”.
S&P said the ratings on Bangladesh reflected the country's low economic development and limited fiscal flexibility due to a combination of constrained revenue-generation capacity and the high spending to improve its basic infrastructure and government services.
"The country's volatile political setting combined with administrative and institutional weaknesses represent additional rating constraints. We weigh these factors against a relatively modest external debt burden, reflecting support from substantial donor engagement, and large remittances from the Bangladeshi diaspora," S&P stated.
Low economic development, as represented by per capita GDP of US$1,500 for 2017, is one of Bangladesh's main rating constraints, it added.

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