Outlook stable: S&P affirms Pakistan’s ratings at ‘B-/B’

Published: April 1, 2014

“We believe Pakistan government’s reform efforts and the International Monetary Fund lending programme will help contain external liquidity risks and gradually strengthen the country’s fiscal and economic profiles,” S&P said

NEW YORK.: 

Standard and Poor’s ratings agency has affirmed ‘B-’ long-term and ‘B’ short-term sovereign credit ratings on Pakistan with a stable outlook.

“We believe Pakistan government’s reform efforts and the International Monetary Fund lending programme will help contain external liquidity risks and gradually strengthen the country’s fiscal and economic profiles,” S&P said in its assessment on Monday.

However, Pakistan has significant security risks, weak institutional and governance effectiveness, low external liquidity, low per capita income, a weak fiscal profile, high public debt and a lack of monetary flexibility, it pointed out.

The stable outlook on the long-term rating balances the potential benefits of the government’s reform efforts and the IMF lending programme against vulnerabilities from external liquidity risk and domestic and external security risks, S&P said.

 

 Sovereigns Rating List
P
Pakistan (Islamic Republic of)

B-

B-

B-

Panama (Republic of)

BBB

BBB

AAA

Papua New Guinea (Independent State of)

B+

B+

BB

Paraguay (Republic of)

BB-

BB-

BB

Peru (Republic of)

A-

BBB+

A

Philippines (Republic of the)

BBB-

BBB-

BBB

Poland (Republic of)

A

A-

A+

Portugal (Republic of) (Unsolicited Ratings)

BB

BB

AAA

Q
Qatar (State of)

AA

AA

AA+

Published in The Express Tribune, April 1st, 2014.

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