S&P repeats sovereign ratings on BD

Global rating agency, the Standard & Poor's (S&P), has affirmed its 'BB-' long-term and 'B' short-term sovereign credit ratings on Bangladesh with a stable outlook for the sixth consecutive year.

The stable outlook balances healthy growth prospects and an improving external profile against fiscal weaknesses and development needs, according to the S&P research update, released Wednesday.

"Although we assess Bangladesh's external liquidity as strong, the country faces the vulnerabilities of a low-income economy, fiscal constraints, and heavy development needs," the rating agency said in its latest update.

The S&P said the stable outlook reflects their expectation that Bangladesh's steady growth path and strong donor support will 'endure to raise average income and sustain the country's external profile over the next 12 months'.

"These factors are balanced against lingering governance and fiscal weaknesses, infrastructure deficiencies, and inflation risks," the rating agency explained.

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