Moody’s downgraded Bangladesh’s sovereign rating to B2 from B1, citing heightened political risks and lower growth prospects. The downgrade reflects challenges faced by the interim government, as the nation struggles with dwindling FX reserves and lost business amid political instability. Fitch also downgraded Bangladesh’s rating in May, highlighting the need to strengthen its FX reserves despite securing a USD 4.7 bln IMF bailout last year.