S&P loweres sovereign credit rating on Pakistan to 'B-' from 'B'

FE Online Desk | Published: February 04, 2019 12:55:35

SINGAPORE (S&P Global Ratings) Feb.4, 2019—S&P Global Ratings today lowered its long-term sovereign credit rating on Pakistan to 'B-' from 'B'.

"The outlook for the long-term rating is stable. At the same time, we affirmed the short-term sovereign rating and issue rating at 'B'. We also lowered the long-term issue rating on senior unsecured debt and sukuk trust certificates to 'B-' from 'B'," the S & P said.

It said the stable outlook reflects our expectations that Pakistan will secure sufficient financing to meet its external obligations over the next 12 months, and that neither external nor fiscal metrics will deteriorate well beyond our current projections.

"We may raise our ratings on Pakistan if the economy materially outperforms our expectations, strengthening the country's fiscal and external positions. Conversely, we may lower our ratings if Pakistan's fiscal, economic, or external indicators continue to deteriorate, such that the government's external debt repayments come under pressure".

Indications of this would include GDP growth below our forecast, or external or fiscal imbalances higher than what we expected, it added.

-rmc//