{"id":12877,"date":"2022-12-23T13:03:31","date_gmt":"2022-12-23T13:03:31","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=12877"},"modified":"2022-12-23T13:20:19","modified_gmt":"2022-12-23T13:20:19","slug":"sp-global-ratings-downgrades-pakistans-credit-score","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/business\/sp-global-ratings-downgrades-pakistans-credit-score\/","title":{"rendered":"S&#038;P Global Ratings downgrades Pakistan\u2019s credit score"},"content":{"rendered":"<p>S&amp;P Global Ratings has downgraded Pakistan\u2019s credit score due to the series of shocks \u2014 from flooding to surging inflation \u2014 that has deteriorated the country\u2019s external, fiscal and economic metrics.<\/p>\n<p>The nation\u2019s credit score was downgraded from B- to CCC+ by S&amp;P, which expects Pakistan\u2019s dwindling foreign reserves to remain under pressure in the coming year, just as political risks linger, according to a statement.<\/p>\n<p>\u201cPakistan\u2019s already low foreign exchange reserves will remain under pressure throughout 2023, barring a material decline in oil prices or a step-up in foreign assistance,\u201d S&amp;P analysts Andrew Wood and YeeFarn Phua wrote.<\/p>\n<p>The country also faces elevated political risks which may affect its policy trajectory over the next year.<\/p>\n<p><em><strong>Read more:<a href=\"https:\/\/dailyausaf.com\/en\/technology\/no-google-payments-blocked-clarifies-sbp.html\">No Google payments blocked, clarifies SBP<\/a><\/strong><\/em><\/p>\n<p>Fitch Ratings and Moody\u2019s Investors Service already rank the nation\u2019s $7.8 billion in foreign bonds at seven notches below investment grade, the equivalent of S&amp;P\u2019s CCC+ rating, on par with El Salvador and Ukraine. S&amp;P also raised the outlook for Pakistan to stable from negative on Thursday.<\/p>\n<p>The country is facing an economic crisis with only enough reserves to cover one month of imports, a dollar shortage and a delay in its loan programme with the <a href=\"https:\/\/www.imf.org\/en\/Home\">International Monetary Fund<\/a>. Investors are pessimistic about Pakistan\u2019s ability to keep up with its foreign debt obligations, with long-term dollar bonds continuing to trade at distressed levels despite the payment of a $1 billion bond this month.<\/p>\n<p>S&amp;P said this year\u2019s severe floods, surging food and energy inflation, as well as rising global interest rates, will further depress Pakistan\u2019s economic and fiscal outcomes, with refinancing challenges over the medium term.<\/p>\n<p>Pakistan\u2019s unprecedented floods in the summer killed more than 1,700 people, inundated a third of the nation and cut the nation\u2019s growth by half. The floods have left about $32 billion in damages and losses to the nation\u2019s economy.<\/p>\n<p>Meantime, the current administration is set to end by August of next year or earlier, meaning it has limited time to implement economic reforms.<\/p>\n<p>\u201cWe expect political uncertainty to remain elevated over the coming quarters, with continued pressure from the opposition to hold early elections,\u201d the S&amp;P analysts wrote.<\/p>\n<p>The agency maintained its outlook at \u201cstable\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S&amp;P Global Ratings has downgraded Pakistan\u2019s credit score due to the series of shocks \u2014 from flooding to surging inflation \u2014 that has deteriorated the country\u2019s external, fiscal and economic metrics. The nation\u2019s credit score was downgraded from B- to CCC+ by S&amp;P, which expects Pakistan\u2019s dwindling foreign reserves to remain under pressure in the [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":12878,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[443,6825,1247,160,138],"class_list":["post-12877","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-dollar","tag-earth","tag-international-monetary-fund","tag-imf","tag-pakistan"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/12877","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=12877"}],"version-history":[{"count":0,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/12877\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/12878"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=12877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=12877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=12877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}