The State Bank of Pakistan (SBP) has made it clear that the placement of Pakistan’s sovereign rating under review by Moody’s Investors Service (Moody’s) Moody’s was not in any way because of the country’s fundamentals, policy settings or outlook, all of which are viewed in very complimentary terms by the rating agency.
Taking to Twitter on Friday, the SBP further said: “ The action has nothing to do with Pakistan specifically. The only driver is Moody’s global approach of placing all countries that are expected to participate in the G20 debt relief initiative under review”.
1/2Moody’s has placed Pakistan’s sovereign rating under review. As they note, this is not in any way because of Pakistan’s fundamentals, policy settings or outlook, all of which are viewed in very complimentary terms by Moody’s.
— SBP (@StateBank_Pak) May 15, 2020
2/2Indeed, the action has nothing to do with Pakistan specifically. The only driver is Moody’s global approach of placing all countries that are expected to participate in the G20 debt relief initiative under review.
— SBP (@StateBank_Pak) May 15, 2020
The SBP reaction came after Moody’s placed the government of Pakistan’s local and foreign currency long term issuer and senior unsecured B3 ratings under review for downgrade on Thursday. Moody’s has placed the B3 foreign currency senior unsecured ratings for the Third Pakistan International Sukuk Co Ltd under review for downgrade. The associated payment obligations are, in Moody’s view, direct obligations of the Government of Pakistan.
