Pakistan long term credit rating downgraded
ISLAMABAD - Pakistan Long term credit rating has been downgraded on account of two aspects.
As per media report, Credit rating agency Fitch Ratings has recently downgraded Pakistan’s long-term foreign currency issuer default rating by one notch, from B to B-.
In its commentary on the downgrade, Fitch referred to Pakistan’s shrinking forex reserves and high debt burden among other factors.
The rating downgrade has pushed Pakistan to the lower end of the highly speculative grade.
This downgrade has made many headlines both in Pakistan and abroad. Here we explain in simple terms what it means for the country and, no less importantly, what it doesn't.