Fitch Ratings has assigned a negative outlook to Bangladesh, making it one of the two countries in the Asia-Pacific region with a pessimistic rating in the Asia-Pacific Sovereigns Outlook 2024. Despite Fitch previously assigning Bangladesh a BB- rating in September 2023, it has revised the outlook from stable to negative. The report suggests that high borrowing costs and modest fiscal deficit reductions may lead to rising debt ratios for Bangladesh in 2024, despite solid growth rates. Fitch also notes that many sovereigns in the region have lost fiscal headroom in recent years, leaving them more susceptible to external shocks. The negative outlook raises concerns about Bangladesh’s fiscal health and vulnerability to global economic challenges.
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