S&P ratings on Bangladesh affirmed at 'BB-/B', outlook stable

SINGAPORE - Standard & Poor's has affirmed its 'BB-' long-term and 'B' short-term sovereign credit ratings on Bangladesh, with the outlook stable. The transfer and convertibility (T&C) assessment remains 'BB-'.

Low economic development, represented by per capita GDP of US$1,250 for 2015, is Bangladesh's main rating constraint, S&P says. “This income level offers a weak and narrow revenue base, in turn limiting the fiscal and monetary flexibility needed to respond to exogenous shocks.

“Nevertheless, Bangladesh's real per capita GDP growth of about 5.2% is healthy and in line with peers' at this income level. Despite numerous structural impediments to growth, in particular the shortage of electricity, the economy has a record of steady growth with minimal fluctuation.”

S&P adds that Bangladesh's fractious domestic political conditions distract from stable policymaking, and that widespread strikes and blockades have in particular caused substantial economic disruption. www.standardandpoors.com (ATI).