<p>S&P Global Ratings on Tuesday lowered Bangladesh's outlook to negative from stable, citing risks its external liquidity position could deteriorate in the next year, while foreign exchange reserves remain under pressure.</p>.<p>The ratings agency expects the economy to expand between 6-6.4% over the next three years. Bangladesh's GDP growth fell to 6.03% in the financial year ended June 2023.</p>.<p>The South Asian nation is struggling to pay for imported fuel because of a dollar shortage and its dollar reserves have shrunk by more than a third since Russia's invasion of Ukraine to stand at $29.85 billion as of July 19.</p>.<p>"We may lower the ratings on Bangladesh if net external debt or liquidity metrics worsen further, such that narrow net external debt surpasses 100% of current account receipts, or gross external financing needs exceed 100% of current account receipts plus usable reserves," S&P said, affirming the country's sovereign credit rating at BB-.</p>.<p>Bangladesh needs favorable trade and financial flows to stabilize its external settings in the next 12 months, the agency added.</p>
<p>S&P Global Ratings on Tuesday lowered Bangladesh's outlook to negative from stable, citing risks its external liquidity position could deteriorate in the next year, while foreign exchange reserves remain under pressure.</p>.<p>The ratings agency expects the economy to expand between 6-6.4% over the next three years. Bangladesh's GDP growth fell to 6.03% in the financial year ended June 2023.</p>.<p>The South Asian nation is struggling to pay for imported fuel because of a dollar shortage and its dollar reserves have shrunk by more than a third since Russia's invasion of Ukraine to stand at $29.85 billion as of July 19.</p>.<p>"We may lower the ratings on Bangladesh if net external debt or liquidity metrics worsen further, such that narrow net external debt surpasses 100% of current account receipts, or gross external financing needs exceed 100% of current account receipts plus usable reserves," S&P said, affirming the country's sovereign credit rating at BB-.</p>.<p>Bangladesh needs favorable trade and financial flows to stabilize its external settings in the next 12 months, the agency added.</p>