Bangladesh got a BB- sovereign credit rating by US rating agency Standard & Poor's (S&P), securing a higher position than Pakistan and Sri Lanka.
The first ever rating would help Bangladesh government to measure the existing risks in the economy and both public and private sectors would now be able to borrow at a lower interest rate from international lenders.
S&P rates 123 governments.
The organisation has a total of 17 rating categories ranging from AAA to CCC+ and Bangladesh was placed in number 13 category.
Announcing the achievement at the Finance Division of the ministry, Finance Minister AMA Muhith said out of 123 countries S&P rated this year, Bangladesh's position was more or less the same from that of some other emerging economies of the region like the Philippines, Indonesia and Vietnam.
Muhith also said his government is happy with the rating.
Admitting the past government’s contribution in achieving the rating, the minister said the rating agency has evaluated GDP growth of the last ten years. This is why the achievements of the previous BNP-led four-party alliance and the immediate past caretaker governments contributed to securing the good rating.
Earlier in 2006, Bangladesh Bank asked S&P and Moody's Investors Service to rate Bangladesh.
At the briefing, Bangladesh Bank Deputy Governor Ziaul Hasan Siddiqui said the rating would help reduce costs of international trades.
Expressing expectation of getting more Foreign Direct Investment in the country, BB Governor Atiur Rahman said GDP growth, high foreign exchange reserve and good current account balance were the reasons behind getting a good rating like this.
>> Source: The Daily Star, April 6, 2010
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