S&P affirms BB-minus/B ratings on Bangladesh with stable outlook

S&P Global Ratings has affirmed BB-minus long-term and B short-term sovereign credit ratings on Bangladesh.

The outlook remains stable, it said adding Bangladesh's solid growth prospects will prevail against the risks associated with Covid-19 pandemic over the next 12 months.

S&P said the ratings on Bangladesh reflect the country's modest per capita income and diminished fiscal flexibility owing to a combination of limited revenue-generation capacity and elevated debt-servicing costs.

Evolving administrative and institutional settings represent additional rating constraints.

These factors are weighed against consistently fast economic growth and a balanced external position, reflecting substantive engagement with bilateral and multilateral development partners, large remittances from overseas Bangladeshi citizens back to the country, and a globally competitive garment sector.

Despite stout near-term challenges, S&P said it expects Bangladesh to continue to achieve higher-than-average economic growth compared with its peers.

( With inputs from ANI )