India vs. Bangladesh: The Credit Rating Face-Off
Despite knowing so many facts about Bangladesh and knowing that the country has recently seen so much chaos, the question on everyone’s mind arises: how could Bangladesh’s credit rating be any better than India’s? In the past year, when Bangladesh completely lost its footing after Prime Minister Sheikh Hasina had to fly out of the country, leaving behind a chaotic and unsettled nation, everyone expected not just the credit rating, but every other rating to nosedive!
Are the agencies seeing something we’re not? Or is it time to question how these ratings actually work?
India vs. Bangladesh Credit Rating
Let’s talk credit ratings, yes, those mysterious letter grades that somehow decide how much it costs a country to borrow money. As of 2025, India just scored a shiny ‘BBB-’ with a stable outlook from S&P. In a simple language it is like like getting a solid B-plus in your financial report card! Meanwhile, Bangladesh is holding a ‘B+’ with a stable outlook from the same agencies!
Meanwhile Indian government welcomes the notion, and gives credit to the PM and policies.
The Government of India welcomes the decision by S&P Global Ratings to upgrade India’s long-term sovereign credit rating to ‘BBB’ from ‘BBB-’ and its short-term rating to ‘A-2’ from ‘A-3’, with a Stable Outlook. S&P last upgraded India in January 2007 to ‘BBB-’, hence, this…
— Ministry of Finance (@FinMinIndia) August 14, 2025
Also, Last year, Moody’s threw a curveball, downgrading Bangladesh to ‘B2’. Under the circumstances of some economic hiccups like high inflation and falling reserves. To talk about it, Bangladesh’s growth has been impressive. The largely and biggest contribution will be given to its booming garment industry and remittances. Yet, these recent challenges have made rating agencies a bit cautious.
International #credit rating agency #Moody‘s Investors Service (Moody’s) today downgraded #Bangladesh‘s long-term #ratings to B1 from Ba3.
Read the full story: https://t.co/riAchip8yq pic.twitter.com/ZfeNLb5lzp
— The Daily Star (@dailystarnews) May 30, 2023
India, on the other hand, has had its share of problems too, But thanks to strong fiscal discipline and impressive economic growth, S&P just upgraded India in August 2025. This upgrade came after 18 long years, but has came after many reforms in the indian economy,
So, who’s winning the economic race? It’s a close call, but ratings tell us a lot about market confidence.
Key Points Influencing The Ratings Of Both Countries
Bangladesh’s Credit Rating
Bangladesh’s credit rating is still finding rating and support due to its strength, that is, its blooming ready-made garment industry, supported by the steady remittances from millions of overseas workers. This has kept Bangladesh’s economy flowing through tough times. But under the cover, there are major concerns that cannot be overlooked and are one by one coming in front of the eyes. Government revenues are low, public sector banks are struggling, and the country remains highly sensitive to global shocks like rising commodity prices or trade disruptions. Recently, in the past year, things have gotten even worse, inflation is high, the currency is under pressure, and political uncertainty is growing. All of this puts serious strain on stability and future reforms.
India’ Credit Rating
On the other hand, India’s credit profile is all the positive notes, by its large, fast-growing economy, strong domestic consumption, and solid external balance sheet. Its democratic institutions have boosted the investor’s confidence and boosted stability in time of shocks. However, India faces challenges such as a high debt-to-GDP ratio and significant interest payments, which limit fiscal space. The corporate bond market is still developing, and many businesses struggle to access affordable credit. But on a very positive note, structural reforms aimed at boosting infrastructure, attracting private investment, and improving fiscal health are underway. If sustained, these efforts could support long-term economic growth and potentially lead to further credit rating upgrades in the future.
Comparing Bangladesh and India’s credit ratings? It’s a mixed bag! Bangladesh shines with export growth but wobbles on political risks and sector reliance. India’s bigger, more diverse, but juggling debt and fiscal hurdles. And did you know what is the good news? Reforms are in play, and rating upgrades are starting to roll in. Who’s ahead? You decide!
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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