S&P cuts Pakistan Rating to B-, says recovery may take longer

Pakistan’s long-term foreign currency debt rating was downgraded by S&P to B- from B.

According to the S&P rating agency, it believes prospects for rapid recovery in fiscal and external settings are now diminished modest growth prospects and limited reserve buffers will continue to challenge Pakistan’s external position.

Says negotiations with IMF have taken longer than anticipated, S&P sees reform timeline to be more protracted in nature, it added.

Long-Term Local Currency Debt Rating was downgraded by S&P to B- from B.

Outlook remains stable on expectations Pakistan will secure sufficient funding to meet its external obligations in the next one to two years.

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