Dhaka, Bangladesh (BBN)- Fitch Ratings has revised Bangladesh’s outlook to “Negative” from “Stable” while affirming its ‘B+’ sovereign rating, citing rising external financing pressures, weak macroeconomic buffers, and vulnerabilities linked to the Middle East conflict.
Key concerns highlighted by Fitch include:
* Heavy dependence on Middle East remittances and energy imports, exposing Bangladesh to geopolitical shocks
* Persistently weak governance, banking sector fragility, and slow reform progress
* Declining private-sector credit growth and rising non-performing loans, especially in state-owned banks
* Low revenue mobilisation and widening fiscal deficits
* Continued inflationary pressures alongside slowing economic growth
Despite moderate public debt and continued access to concessional external financing, Fitch warned that uncertainty over reforms and external shocks could further pressure foreign exchange reserves, the currency, and overall macroeconomic stability.
The outlook revision signals growing international concern over Bangladesh’s economic resilience at a time when investor confidence and external sector stability remain under strain.
BBN/SSR/AD