S&P Global upgraded Pakistan’s sovereign credit rating from ‘CCC+’ to ‘B-’ on Thursday and assigned a ‘stable’ outlook, citing improvements in the country’s financial position and foreign reserves, supported by assistance from the International Monetary Fund (IMF).
In its statement, S&P noted, “The stable outlook reflects our expectation that ongoing economic recovery and the government’s efforts to boost revenue will help stabilize fiscal and debt indicators.”
The agency also expressed confidence that continued access to official financing will enable Pakistan to meet its external debt obligations and successfully roll over its commercial credit lines over the next year.
According to brokerage house Arif Habib Limited (AHL), Pakistan last held a ‘B-’ rating in Jul’22, but with a negative outlook.
