S and P affirms stable outlook – Alfalah Securities Limited

Karachi, July 23, 2012 (PPI-OT): Standard and Poor’s (S and P) Ratings Services has affirmed ‘B-’ long-term sovereign credit rating of Pakistan with a stable outlook.

According to Alfalah Securities Limited, S and P’s also affirmed its ‘B-’ issue rating on Pakistan’s senior unsecured foreign and local currency debt and ‘B-’ on transfer and convertibility assessment. The short-term sovereign credit rating has been upgraded to ‘B’ from ‘C’. 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. While Pakistan’s high public and external indebtedness remains a major rating constraint.