Pakistan Cut by S&P as Fiscal, Economic Outlook Deteriorates
- S&P lowers rating to CCC+ after floods, inflation shocks
- Country is already scored CCC+ equivalent by Moody’s, Fitch
An employee counts out rupee banknotes in Karachi, Pakistan.
Photographer: Asim Hafeez/Bloomberg
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Pakistan was downgraded by S&P Global Ratings as a series of shocks — from flooding to surging inflation — cause the nation’s external, fiscal and economic metrics to further deteriorate.
The nation’s credit score was cut by a notch to CCC+ from B- by S&P, which expects Pakistan’s dwindling foreign reserves to remain under pressure in the coming year, just as political risks lingers, according to a Thursday statement.