LAHORE: A setback for Pakistan economy outlook from international creditrating agency S&P.
S&P has downgraded Pakistan’s long-term foreign currency debt rating from Bto B- and maintained a stable outlook for its long-term rating.
However, the rating agency affirmed the short-term sovereign and issuerating at B.
Also, S&P stated that its stable outlook for Pakistan reflected itsanticipation that Pakistan had sufficient financing to meet its externalfinancing requirements over the next twelve months,
It projected that neither external nor fiscal metrics will worsen beyondtheir current forecasts.
Additionally, S&P said it would raise their ratings for Pakistan if theeconomy materially outperformed their expectations i.e. strengthening thecountry’s fiscal and external fiscal positions.
Moreover, the lowering of the ratings was a consequence of S&P’s moresubdued expectations regarding Pakistan’s economic growth, alongsideintensified external and fiscal risks.