Fitch affirms Bangladesh's issuer default rating at 'BB-'; outlook stable

The rating agency, Fitch Ratings, on Friday, affirmed Bangladesh's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a stable outlook.

The rating reflects Bangladesh's strong growth prospects, government debt that is below the 'BB' median, and a manageable external debt repayment profile. This is balanced by low government revenue, low per capita income, a weak banking sector, and deficient governance indicators, Fitch said in a statement.

The stable outlook reflects the move to greater exchange-rate flexibility. Also, the prospect of continued support from external official creditors will help Bangladesh navigate a challenging external environment posed by the Ukraine war