Bangladesh’s Political Crisis Adds to Growth Risks, S&P Says

(Bloomberg) -- Bangladesh’s political crisis has further exacerbated downside risks to economic growth, fiscal performance, and external metrics, S&P Global Ratings said.

Most Read from Bloomberg

• Africa’s Richest City Needs $12 Billion to Fix Infrastructure

• NYC Subway Riders See ‘Exceptionally High’ Air Pollution

• New York City’s Outdoor Dining Sheds Will Start Disappearing

• New York City Paid $2 Million for Empty Hotel Rooms Meant for Migrants

• The 5 Coastal States That Face the Most Devastating Flood Risk

“The damage to credit metrics may be contained if the socio-political situation normalizes soon,” the company said in a statement on Wednesday.

While credit buffers have diminished, S&P said it wouldn’t expect immediate strong pressures on the credit ratings. S&P in July lowered Bangladesh’s credit ratings to B+ from BB- due to a sustained decline in its foreign exchange reserves.

If disruptions continue, exports would be materially lower than expected, with a more prolonged impact on Bangladesh’s external balance sheet and further diminish the central bank’s reserves, S&P said Wednesday.

Most Read from Bloomberg Businessweek

• What Happens When Ozempic Takes Over Your Town

• Nate Silver Wants to Teach You How to Be a Better Gambler

• Mark Zuckerberg Is Laughing at Zuck Memes, Too

• Made-in-China Goes Upscale as a New Generation of Brands Battles Slowdown

• Five Questions for Trump Adviser Scott Bessent

©2024 Bloomberg L.P.