DHAKA, July 25 (Reuters) - S&P Global Ratings on Tuesday lowered Bangladesh's long-term rating outlook to negative from stable, citing risks the country's external liquidity position could deteriorate in the next year while foreign exchange reserves remain under pressure.
"Lower generation of current account receipts than we expect, a higher overall current account deficit than we forecast, or a failure to materially boost foreign exchange reserves would indicate downward pressure on the rating," S&P said.
"This would cause either more uncertainty and more costs to weigh the growing risks of uncertainty in repayment," he said.
Moazzem said measures were needed particularly in subsidy management and energy imports, which are the main weaknesses in the foreign exchange reserve situation.
"The government needs to take bold actions in these regards including substituting importing energy by exploring gas and substituting energy import for power, agriculture by solar based and other renewable energy measures," he added.
Persons:
Khondaker Golam, Moazzem, Ruma Paul, Juby Babu, Jacqueline Wong, Lincoln, Jamie Freed
Organizations:
International Monetary Fund, Thomson
Locations:
DHAKA, Ukraine, Bangladesh, Dhaka, Bengaluru