A sovereign credit rating is an independent assessment of how reliably a country's government can fulfill its financial commitments (such as debt repayment). These ratings are primarily issued by three international agencies: S&P Global Ratings, Moody's, and Fitch Ratings.
Rating agencies evaluate factors like economic growth, fiscal policy, debt levels, political stability, foreign reserves, and external debt repayment history. High ratings (AAA, AA) indicate very reliable debt repayment; low ratings (B, CCC) indicate higher risk.
Bangladesh's sovereign credit rating has been under pressure recently. In July 2024, S&P downgraded Bangladesh from BB- to B+. Moody's also changed Bangladesh's outlook from 'stable' to 'negative' in 2023, primarily due to declining foreign exchange reserves.