‘Heightened political risks, lower growth’. Why Moody’s has downgraded Bangladesh’s economic outlook
New Delhi: American ratings agency Moody’s has cited “heightened political risks” and “lower growth” as reasons behind downgrading Bangladesh’s long-term economic rating from B1 to B2, and changing outlook from “stable” to “negative”.
The agency said these factors, exacerbated by the country’s recent political and social upheaval, had increased government liquidity risks, external vulnerabilities and also banking sector risks.
Its statement added: “With elevated social risks, the absence of a clear election roadmap, the deterioration of law and order, and the nascent reemergence of community-based tensions also raises political risk”.
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