MP warns of credit rating risks if judiciary, institutions undermined

Hithadhoo Central MP Ahmed Azaan on Monday cautioned that if courts and independent institutions, including the Maldives Monetary Authority (MMA), make decisions based on external pressure, international financial institutions may downgrade the country’s credit ratings.

Speaking during the debate on the bill to reduce the number of Supreme Court judges—returned to parliament without ratification by President Mohamed Muizzu—Azaan stated that judicial reforms over the past 15 years had been carried out hastily and without thorough planning.

Azaan noted that the Maldives requires assistance from foreign financial institutions and that international credit rating agencies assess the independence of institutions such as the judiciary and the MMA.

"We have to pay $1 billion next year. This can be done with foreign aid. International rating agencies closely examine whether independent institutions like the judiciary and MMA function autonomously," Azaan said.

A downgrade to a 'D' rating by agencies such as Fitch and Moody’s would categorise the Maldives as a country in default and facing economic instability, he added.

Azaan warned that such a rating would make it difficult to secure international funding for major infrastructure projects initiated by President Muizzu’s administration.

He also stated that decisions made in response to political pressure could have long-term consequences for the entire country and the ruling People’s National Congress (PNC).

“Therefore, this bill should be withdrawn from the parliament,” Azaan said.

Following the passage of the bill, Azaan was removed from the PNC’s official WhatsApp group and excluded from key parliamentary committees for not supporting the bill.