Standard & Poor’s Ratings Services on Friday affirmed its ‘B-' long-term sovereign credit rating on the Islamic Republic of Pakistan.
“The outlook on the long-term rating remains stable,” the rating agency said.
S&P also affirmed 'B-' issue rating on Pakistan’s senior unsecured foreign and local currency debt and its 'B-' transfer and convertibility assessment.
“At the same time, we raised the short-term sovereign credit rating to 'B' from 'C', following a change in criteria that links long-term ratings with short-term ones,” a S&P note said.
The sovereign ratings on Pakistan take into account the country’s weak fiscal profile and associated high public and external leverage, low income level, as well as the underlying weak political and policy setting.
“These constraints are balanced against strong remittance inflows that help sustain a still-adequate external liquidity position,” the rating agency added.