B3 rating under review for downgrade

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Staff Reporter

Karachi

Moody’s has decided to place Pakistan’s B3 rating under review for a possible downgrade.
The primary basis upon which the credit rating agency has placed GoP’s credit rating under review is its expectation that Pakistan would request bilateral debt service relief as per G20’s initiative following the COVID-19 outbreak.
That said, the agency points out that such a request is not likely to have an effect on the credit rating. However, the review period gives the agency time to assess possible default of the government on private sector debt following the attainment of the said initiative. Default on private sector debt, losses in excess of the B3 rating threshold.

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