Fitch lowers Bangladesh rating as external buffers weaken

Fitch Ratings has downgraded Bangladesh’s long-term foreign-currency issuer default rating to “B+” from “BB-“, citing the lingering weakening of the country’s external buffers. However, the outlook is stable, reflecting mitigation of refinancing risks through the IMF program and moderate government debt. The downgrade comes as Bangladesh’s foreign exchange reserves have fallen substantially due to interventions, capital outflows, and informal remittance channels, leaving the country more vulnerable to external shocks despite recent policy reforms.