Bangladesh is among several Asia-Pacific economies at risk of credit pressure from escalating US tariffs, Fitch Ratings warned yesterday, as trade tensions continue to rattle global markets.

The American rating agency assumes the effects to be temporary, and that political stability is restored and sustained

“BB” ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time. It, however, means business or financial flexibility exists that supports the servicing of financial commitments.

Fitch Ratings has downgraded Bangladesh's long-term foreign-currency issuer default rating to “B+” from “BB-” owing to the lingering weakening of the country’s external buffers

Fitch upgraded its credit rating for UK government debt from "negative" to "stable" Friday, citing easing economic policy risks, while reaffirming the country's AA- rating.

Bangladesh’s credit rating came under further threat today as Fitch put the country on a “negative” outlook while giving a damning verdict on the central bank’s policy response to the fast-depleting foreign currency reserves

Bangladesh’s revenue-GDP ratio is a third of the median seen in the countries that have the same credit rating, highlighting the country’s weak capacity to finance development and support growth, according to American credit ratings agency Fitch Ratings.   

Bangladesh’s budget deficit forecasted by the government for the next fiscal year could be at risk if the growth undershoots the authorities’ relatively optimistic target, said Fitch Ratings.