S&P revises Pakistan view to negative

S&P said it revised its outlook for Pakistan to negative from stable and affirmed the B- ratings on the sovereign, its senior unsecured notes and sukuk trust certificates.

“We revised the outlook to negative to reflect Pakistan's weakening external metrics against a backdrop of higher commodity prices, tighter global financial conditions, and a weakening rupee. The Pakistan government has considerable external indebtedness and liquidity needs, and an elevated general government fiscal deficit and debt stock,” the agency said in a press release.

Various reforms have helped, but the potential for continued erosion in key metrics, including external liquidity, is rising, S&P noted.

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