Mauritius Under Pressure from Moody’s: Government Mobilized to Avoid 'Junk Status'

Mauritius remains under close scrutiny by Moody’s agency. Prime Minister Navin Ramgoolam warned of the risk of the country being downgraded to ‘junk’ status. He was responding to a question from MP Raviraj Beechook in the National Assembly this morning.

Navin Ramgoolam emphasized that a high-level delegation traveled to London to meet with Moody’s management. The goal was to present the economic and budgetary consolidation plan, as well as the government's commitments to structural reforms. This includes pension reform, which has been deemed unsustainable by the International Monetary Fund (IMF) and the World Bank since the previous government.

The Prime Minister recalled that in June 2012, Moody’s raised Mauritius's rating from Baa2 to Baa1, with a stable outlook. Before the 2014 elections, the public debt was at 59.5% of GDP, a level consistent with international recommendations.

Navin Ramgoolam attributes the current situation to poor economic management by the previous government. He noted that the country’s rating has been gradually downgraded since 2020, with four successive reductions until January 2025.

To avoid a transition to speculative status (‘junk status’), he indicated that a delegation had been sent to London to present the budget consolidation plan and the ongoing reforms, particularly concerning pensions.

Thanks to these measures, he claims the downgrade has been avoided.

However, Mauritius remains under the watch of Moody’s. The government assures it will continue to take action to prevent any further deterioration, aiming to protect investors, economic growth, and the population, concluded Navin Ramgoolam.