Bangladesh Bank Rejects Moody's Credit Rating Downgrade

Bangladesh's sovereign credit rating has been downgraded by one notch by the international credit rating agency Moody's. In response, Bangladesh Bank rejected the rating and stated that it does not reflect the significant political and economic progress achieved in July 2024.

This was announced in a press release by Bangladesh Bank on Thursday, November 21. Moody's downgraded Bangladesh's sovereign rating from 'B1' to 'B2' on Monday.

At the same time, the short-term issuer rating was maintained at 'Not Prime'.

Moody's cited political risk and potential economic challenges as the reasons for the downgrade.

In the press release, Bangladesh Bank stated that the rating failed to account for the reforms and progress initiated by the interim government after the historic political transition earlier this year.

The central bank also pointed out that Moody's failed to recognize the broader picture of ongoing reform efforts and economic stability. The assessment was described as "backward-looking" and did not fully consider the positive changes under the new government.

Bangladesh Bank urged the agency to conduct a more thorough and on-the-ground review of the country's reform and economic outlook, stating that Moody's failed to adopt a forward-looking perspective during the evaluation.

Bangladesh Bank believes that with continued reforms supported by both domestic political backing and international partnerships, the economy is on the path to recovery.

The press release further emphasized that Bangladesh Bank has called for a more comprehensive evaluation of the country's economic situation, involving consultations with key stakeholders and direct observations. The central bank firmly stated that only through such an approach can Moody's provide an accurate and fair assessment of Bangladesh's evolving economic context.