The Ministry of Finance has clarified that the rating review conducted by Moody’s Investor Service on May 14 “did not downgrade Pakistan’s B3 rating”.
In a statement issued on Friday, the ministry stated that the Moody’s Investor Service only placed the current rating under review for downgrade in case the G-20 COVID-19 Debt Service Suspension Initiative (G-20 DSSI) extends to private sector creditors.
“The action is, therefore, not Pakistan specific and is in line with Moody’s global approach to place under review for downgrade all sovereigns availing the G-20 DSSI,” it added.
The ministry further said that the review by the Moody’s Investor Service acknowledged that Pakistan had not indicated any interest in extending its debt service relief request to the private sector creditors and that the country’s fundamentals remained strong and on track.
The review also appreciates that amid the pandemic, Pakistan’s economic, financial and institutional strength remained materially unchanged, it added.
