Global credit rating agency Fitch today downgraded the country's rating from 'CCC+' to 'CC'.

This is the second time fitch has downgraded the country's rating this year. In June, Fitch downgraded the country's rating from 'B-minus' to 'CCC Plus'.

Fitch's rating indicates that there is a high probability of defaulting on loans owed to various foreign entities and that the debt situation is very bad.

Fitch's rating indicates that there is a high probability of defaulting on loans owed to various foreign entities and that the debt situation is very bad.

In a statement, Fitch said the country's debt situation is "very bad" at the moment. The foreign exchange reserves in the country declined to 20 per cent between May and July, the statement said. That's a drop from $492 million to $395 million in terms of numbers, Fitch said.

The fall was the sharpest drop in the country's foreign exchange reserves since 2016, Fitch said in the report.

In the statement, Fitch further highlighted:

The country's external debt is expected to reach $557 million by the end of next year .

By 2026, it will reach $1 billion,

By the end of 2026, it could be difficult to get the $200 million we owe.

Fitch pointed out that the country is dependent on imports for these difficulties and the difficulties in accessing foreign exchange are a challenge for the country to tide over this economic crisis.