Quite a bit of spread in ratings my friend. I wouldn’t hire anyone that passes at 51 either mind you. And if I do, I would mind hiring someone who fails at 49.
It is not a function of which political party is in power. If you see https://countryeconomy.com/ratings/pakistan it is apparent that PK never had investment grade credit rating. That is more concerning than political pillow fights. A country that does not have investment grade credit rating for Foreign or Local currency does not attract investment. Which means no way to get above subsistence economy. Most important job of PK government is to get out of this trap and become a creditworthy country so that investments can come.Not surprised at all with introduction of PDM
To be fair the top three are often very close to one another. If you include Feri though, you often see the case where Feri will rate something as junk and the other three will rate as investment grade. Go through link and you will see examples of that.Well most graders wouldn't hesitate to give extra 1-2 points to anyone who is at 49. If they actually give you 49 and let you fail, it means you are really shit, so again, a big difference between 51 and 49.,,
Regulatory risk, financing risk etc are all part of every credible risk assessment exercise.I wonder if FATF has influence on the methodology used by these credit rating agencies to issue ratings. With Pakistan's elevation from Grey list (pending soon), this may improve the country's rating
FATF is totally independent agency, targeting only terror funding and channels.I wonder if FATF has influence on the methodology used by these credit rating agencies to issue ratings. With Pakistan's elevation from Grey list (pending soon), this may improve the country's rating
FATF grey list will stifle investment into the country. I just googled to find this :FATF is totally independent agency, targeting only terror funding and channels.
“The announcement is credit negative for Pakistani banks because it raises questions about potential additional restrictions relating to banks’ foreign-currency clearing services, as well as their foreign operations,” Moody’s said, adding that increased compliance costs would also hamper banks’ profitability.
In this downgrade, it looks like they were assessing impact of recent events like this:Regulatory risk, financing risk etc are all part of every credible risk assessment exercise.