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| India-Pakistan |
| Moody’s downgrades Pakistan’s rating outlook to negative |
| 2018-06-23 |
| [DAWN] Moody’s Investors Service has downgraded Pakistain’s rating to negative from stable. A statement released by the credit rating agency in the evening on Wednesday stated that the decision to change the outlook to negative was driven by heightened external vulnerability risk as ongoing balance of payment pressures erode foreign exchange buffers. The rating agency expects the government’s tax amnesty scheme ‐ due to expire on June 30 ‐ to have a modest impact of around $2-3 billion in foreign exchange inflows. Moody’s said that the foreign exchange reserves have fallen to low levels and in the absence of significant capital inflows ’would will not be replenished over the next 12-18 months’. Moody’s affirmed the B-3 local and foreign currency long-term issuer and senior unsecured debt ratings. It said that the decision to affirm the B3 rating reflects Pakistan’s robust growth potential, supported by ongoing improvements in the energy supply and physical infrastructure, which are likely to raise economic competitiveness over time. “These credit strengths balance Pakistan’s fragile external payment position and very weak government debt affordability owing to low revenue generation capacity”. |
| Posted by:Fred |
| #2 Multiplying by zero still equals zero. |
| Posted by: magpie 2018-06-23 18:32 |
| #1 So is this a negative times a negative thing? |
| Posted by: swksvolFF 2018-06-23 18:24 |