ISLAMABAD: Moody’s on Saturday confirmed Pakistan’s B3 credit rating with a stable outlook as a review of the downturn.
Newspaper reported the agency Third Pakistan International Sukuk Company Ltd for the BBC Three foreign currency senior unsaved rate of confirmed and received the statement of the relevant payments of responsibility Moody’s believes that the government of Pakistan here Is included in the direct responsibilities of.
The main reason for the downgrade was Pakistan’s statement that it would seek to participate in the G20 Debt Service Suspension Initiative (DSSI), raising the question of whether the country owes much to private sector lenders. May demand that it treat Pakistani loans in the same way.
The statement said that although Moody’s believes that the ongoing implementation of the DSSI poses a risk to private lenders, the findings from the review and the confirmation of the rating reflect that Pakistan’s The current B3 rating at the stage is a good reflection.
The agency said it was unclear what influence private lenders would have on Pakistan and other partner governments in dealing with public sector lenders.
However, the rating agency said in a statement that a number of factors suggest that the possibility of large-scale private sector involvement has diminished.
The statement added that there was also a lack of discussion on progress on how private sector participation (PSI) in the DSSI would be affected in general, with the G20 indicators that the PSI Will need the support of the borrowing government, the government of Pakistan continues to claim that PSI is not considered and there is some evidence of repayment of loans to private-sector lenders under the DSSI government ۔
Moody’s said that in certain cases, the risks exist with the possibility that the DSSI may be implemented with private sector lenders so that they can provide assistance in the service of the loan and incur losses in doing so.