China's Refining Industry Faces Major Shakeup Amid Challenges 
Bank of America Posts Strong Q4 2024 Results, Shares Rise 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
Moldova Criticizes Russia Amid Transdniestria Energy Crisis 
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential 
Lithium Market Poised for Recovery Amid Supply Cuts and Rising Demand 
2025 Market Outlook: Key January Events to Watch 
Wall Street Analysts Weigh in on Latest NFP Data 
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge 
S&P 500 Relies on Tech for Growth in Q4 2024, Says Barclays 
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
US Gas Market Poised for Supercycle: Bernstein Analysts 
Moody's Investors Service says that Bangladesh's Ba3 government bond rating is supported by the country's stable and strong growth performance and modest debt burden. However, its very low per capita income, persistent fiscal deficits and a factious political environment pose credit constraints.
Moody's conclusions were contained in its just-released credit analysis, 'Bangladesh' which examines the sovereign in four categories: economic strength, which is assessed as "moderate"; institutional strength "very low (+)"; fiscal strength "low (+)"; and susceptibility to event risk "moderate".
The report constitutes an annual update to investors and is not a rating action.
Moody's report points out that for the fiscal year ended 30 June 2015 (FY2015), Bangladesh's GDP growth edged higher to 6.5% and the government projects a 7.1% expansion in FY2016, supported by industrial activity and backed by a track record of macroeconomic stability.
However, weak infrastructure constrains potential growth.
Exports have remained in positive territory, despite subdued levels of global trade. But, the undiversified nature of the export basket--skewed towards textiles--presents risks because Bangladesh could lose its export share to other emerging competitors over time.
As a net oil importer, Bangladesh is a beneficiary of lower oil prices. However, continued contraction in remittances--due to slowing growth in the Gulf Cooperation Council economies, the primary source of remittances--is likely to dent the external benefits of lower oil prices.
The government's weak revenue base also represents a credit constraint, resulting in persistent fiscal deficits. Such deficits would be higher were it not for Bangladesh's low development spending, which in turn limits the provision of public services.
Fiscal risks are mitigated by government debt ratios that remain modest, with debt primarily from concessional sources.
Moody's assessment of Bangladesh's vulnerability to event risks as "Moderate" is driven by political risks.
