Agency downgrades Pak’s bond ratings
Global rating agency, Moody’s, has downgraded Pakistan’s bond ratings in the wake of growing economic imbalances and political uncertainties in that country.
By Agencies |
NEW DELHI: Global rating agency, Moody���s, has downgraded Pakistan���s bond ratings in the wake of growing economic imbalances and political uncertainties in that country. The agency has downgraded Pakistani government���s bond ratings in the non-investment grade to b2 from b1. The foreign currency bank deposit ceiling was also downgraded to b3, Moody���s investors service said in a statement.
Meanwhile, the outlook on the government���s bond ratings and bank deposit ceilings was changed to stable from negative. The stable outlook reflects the prospect of external financial support from multilateral development banks and bilateral creditors that should bolster external liquidity and offer some policy manoeuvring room, it said.
Besides, Moody���s has also changed the outlook on the foreign currency country ceiling of ba3 to negative from stable. ���Substantial fiscal loosening and poor tax collection had led to a sharp erosion of the fiscal position in the run up to the February elections which have not been adequately corrected,��� said Aninda Mitra, Moody���s VP and senior analyst for Pakistan.
According to the Moody���s, b1, b2 and b3 ratings imply that the bonds on offer are not considered to be attractive investments with little assurance of long-term payments.
Meanwhile, the outlook on the government���s bond ratings and bank deposit ceilings was changed to stable from negative. The stable outlook reflects the prospect of external financial support from multilateral development banks and bilateral creditors that should bolster external liquidity and offer some policy manoeuvring room, it said.
Besides, Moody���s has also changed the outlook on the foreign currency country ceiling of ba3 to negative from stable. ���Substantial fiscal loosening and poor tax collection had led to a sharp erosion of the fiscal position in the run up to the February elections which have not been adequately corrected,��� said Aninda Mitra, Moody���s VP and senior analyst for Pakistan.
According to the Moody���s, b1, b2 and b3 ratings imply that the bonds on offer are not considered to be attractive investments with little assurance of long-term payments.
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