Standard & Poor's Global Ratings on Tuesday lowered Bangladesh's long-term rating outlook to negative from stable, sitting liquidity risks.

Bangladesh is struggling to pay for imported fuel because of a dollar crunch and its dollar reserves have shrunk by more than a third since February 2022.

Rating agency reaffirmed its BB- long-term and B short-term sovereign credit ratings on Bangladesh but said they could be lowered if external debt or liquidity metrics worsened further.

Moody's Investors Service also revised the outlook on Bangladesh's banking system to negative from stable in a report published in March this year.

Bangladesh's GDP growth fell to 6.3 per cent in the financial year ended in June 2023.

Bangladesh's economy is expected to expand between 6% to 6.4% annually between 2024 and 2026, S&P said.