Moody’s confirmation of Pakistan’s rating an encouraging sign: Hamad Azhar

ISLAMABAD: Federal Minister for Economic Affairs Hammad Azhar has expressed satisfaction over Moody’s Investors Service that Moody’s confirmation of Pakistan’s B3 rating with a stable outlook during a pandemic is encouraging sign.

Moody’s confirmed Pakistan’s B3 local and foreign currency issuer and unsecured debt ratings with a stable outlook. In a tweet on Saturday, Hammad Azhar wrote, “Moody’s confirmation of Pak’s B3 rating with a stable outlook during a pandemic is encouraging sign. Pak’s rating was downgraded to B3 negative in June 2018 based on data/policies of PML-N’s term. In Dec 2019, after econ stabilisation by PTI govt, the rating was upgraded to B3 Stable.”

Moody’s confirmation of Pak’s B3 rating with stable outlook during pandemic is encouraging sign.
Pak’s rating was downgraded to B3 negative in June 2018 based on data/policies of pmln’s term. In Dec 2019, after econ stabilsation by PTI govt, rating was upgraded to B3 Stable.

— Hammad Azhar (@Hammad_Azhar) August 8, 2020

Moreover, Minister for Science and Technology Fawad Chaudhry also showed relief and wrote, “Moody’s reconfirmed Pakistan’s credit rating with a stable outlook. In the middle of a global pandemic, its a testimony to the V-shaped recovery Pakistan has seen with PM Imran Khan  balanced approach to safeguarding national health & livelihoods, delivering success on both counts.”

Moody’s reconfirmed Pakistan’s credit rating with a stable outlook. In the middle of a global pandemic its a testimony to the V shaped recovery Pakistan has seen with @ImranKhanPTI balanced approach to safeguarding national health & livelihoods, delivering success on both counts

— Ch Fawad Hussain (@fawadchaudhry) August 8, 2020

On 14th May 2020, Moodys had decided to review Pakistan for downgrade but had retained the ratings. This assessment reflected participation in the G20 Debt Service Suspension Initiative (DSSI) which raised risks that private-sector creditors would incur losses.

Read more: Moody’s retains Pakistan’s rating with stable outlook

In the last few weeks, Moody’s said it considered the evidence of implementation of DSSI for a range of countries and statements by G20 officials.  Moody’s said the decision to conclude the review and confirm the rating reflects the assessment that for Pakistan, those risks are adequately shown in the current B3 rating.

The stable outlook reflects Moody’s view that the pressures Pakistan faces in the wake of the coronavirus shock and prospects for credit metrics in general are likely to remain consistent with the current rating level.