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Moody’s downgrades Pakistan’s credit rating to ‘Caa3’

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Moody’s downgrades Pakistan’s credit rating to ‘Caa3’​

The global rating agency, however, ‘changes Pakistan's outlook to stable from negative’

Salman Siddiqui
February 28, 2023


russia s economy is heading for the worst contraction since the years following the 1991 fall of the soviet union photo reuters


Russia’s economy is heading for the worst contraction since the years following the 1991 fall of the Soviet Union. Photo: reuters

KARACHI:
Moody's Investors Service has downgraded the government of Pakistan's local and foreign currency credit ratings to Caa3 from Caa1 in the wake of the drop in the country's foreign exchange reserves and rise in risk of default on foreign debt repayment.

The global rating agency has, however, "changed the outlook to stable from negative," according to a statement on Tuesday.

The agency has also downgraded the rating for the senior unsecured MTN programme to (P)Caa3 from (P)Caa1.
"The decision to downgrade the ratings is driven by Moody's assessment that Pakistan's increasingly fragile liquidity and external position significantly raises default risks to a level consistent with a Caa3 rating," it said.

In particular, the country's foreign exchange reserves have fallen to extremely low levels, far lower than necessary to cover its imports needs and external debt obligations over the immediate and medium term.

Although the government is implementing some tax measures to meet the conditions of the IMF programme and a disbursement by the IMF may help to cover the country's immediate needs, "weak governance and heightened social risks impede Pakistan's ability to continually implement the range of policies that would secure large amounts of financing and decisively mitigate risks to the balance of payments".

The stable outlook reflects Moody's assessment that the pressures that Pakistan faces are consistent with a Caa3 rating level, with broadly balanced risks. "Significant external financing becoming available in the very near term, such as through the disbursement of the next tranches under the current IMF programme and related financing, would reduce default risk potentially to a level consistent with a higher rating."

However, in the current extremely fragile balance of payments situation, disbursements may not be secured in time to avoid a default. Moreover, beyond the life of the current IMF programme that ends in June 2023, there is very limited visibility on Pakistan's sources of financing for its sizeable external payments needs, Moody's said.

 
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Well, the corruption money still flying ..

2013
Pakistans first bentley bentayga
Owned by sardar mahar
Arrived in ghotki ..... Sindh rural ????
No photo description available.
No photo description available.
 
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We should be grateful to our army leadership. Because of them, we stand in great company alongside financially prosperous utopias such as....*checks notes*
Suriname, Belize, and Ecuador.
Only 6 countries have a credit rating worse than us but I'm sure with the hard work of our FA pass duffers, we shall surpass those countries soon as well 🫡

Good going.

2 more levels, and there’s no way further down.
GHQ: Challenge Accepted
 
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One example...lot of them for sale in Pak dealerships..

Bentley Continental Gt 2009​

PKR 4.00 Crores

Islamabad​


1645094793823bentley-continental-gt-2009-51518856.jpg
 
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this is so sad. sincerely hope pakistan can avoid chaos of total bankruptcy, make peace with India, Iran and Afghanistan and help the region become a real global power center.
 
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Pakistan is going through a process.

A lot of positives will come out of it.

Pakistanis should not lose hope.

Death is a process too.

We would have been a+ but it's due to youthias instability and amount of watches Imran Khan stole..

It's curse from God after he did blasphemy selling a kaba watch

How can you forget Sita white man. That illegitimate child is the only reason Pakistan is cursed.
 
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