S&P Affirms Pakistan’s Long-Term Rating Sovereign Credit Rating and Sukuk Trust Certificates at B-

S&P Global Ratings (S&P) has affirmed Pakistan’s long-term sovereign credit rating at B- and short-term rating at B, with a Stable Outlook, according to local media reports. The US-based rating agency also affirmed Pakistan’s long-term issue rating on senior unsecured debt and Sukuk trust certificates at B-.

The ratings remained under pressure due to high domestic and external security risks, coupled with a narrow tax base, considerable external debt, and high fiscal deficit, among others. S&P noted that although the COVID-19 pandemic had worsened Pakistan’s economic decline, the country’s gross domestic product was forecast to recover to 1.3% during the current fiscal year ending 202...