Moody’s has maintained the Maldives’ credit rating at Caa2 but upgraded the country’s outlook from “Negative” to “Stable” — a shift the agency directly attributes to the fiscal and monetary reforms implemented by President Dr. Mohamed Muizzu’s administration.

Moody’s says the outlook upgrade reflects the positive results of the robust policies carried out over the past year, noting that the government’s measures are already strengthening the Maldives’ ability to service its debt.

According to the agency, the biggest gains have come from improved foreign currency liquidity. Airport taxes and fees, Green Tax, and TGST revisions — along with tighter enforcement of foreign currency regulations — have boosted forex revenue and helped rebuild official reserves.

Moody’s also highlighted the sharp rise in the Sovereign Development Fund’s foreign currency balance, jumping from just 15 million dollars last year to 126 million dollars as of November 9th under the new financial policies.

The agency praised the government’s stronger expenditure controls, which have reduced this year’s budget deficit, while the economy continues to expand. Tourism arrivals are up 10 percent, and total guest nights have grown by 7.2 percent compared with last year.

Despite concerns over next year’s major debt repayment, Moody’s says the government is actively managing obligations — including the 500-million-dollar Sukuk — as part of a medium-term plan to lower overall debt.

The Ministry of Finance says next year’s approved budget aims to further cut the deficit while maintaining stability.

With this outlook improvement, Moody’s signals growing confidence in President Muizzu’s economic reforms — marking a significant policy win for the administration.