Web Desk

ISLAMABAD: Global credit rating agency Fitch Ratings on Wednesday reaffirmed Pakistan&rsquo;s long-term foreign-currency credit rating at B-, signaling continued economic stability. <a href="https://www.pakistantv.com/article/fitch-downgrades-frances-credit-rating-in-new-debt-battle-blow" target="_blank" style="color: rgb(0, 0, 0);" rel="noopener noreferrer" class="fr-green">Fitch</a> also assigned Pakistan a Recovery Rating of RR4, indicating average recovery for investors in the event of a default. Previously, Pakistan had been placed in the &ldquo;Under Criteria Observation&rdquo; category, a temporary status used when agencies reassess ratings under revised rules. It has now been removed. Improved financing conditionsThe rating agency had upgraded Pakistan&rsquo;s foreign-currency rating to B- with a stable outlook in April last year, reflecting improved external financing conditions and policy support under the International Monetary Fund program.&nbsp;Fitch warned that Pakistan&rsquo;s rating could come under pressure if fiscal reforms slow, debt levels rise, or external liquidity weakens, particularly due to delays in IMF program reviews.&nbsp;It said the rating could improve if Pakistan achieves sustained reductions in government debt, strengthens tax collection, and builds foreign exchange reserves beyond current forecasts.&nbsp;The decision was seen by market observers as a positive signal, as Pakistan retained its rating after a review under stricter criteria.

Economy

Also assigns Pakistan a Recovery Rating of RR4, which indicates an average level of recovery for investors in the event of a default.

Articles tagged with "Pakistan's credit rating"

Fitch reaffirms Pakistan’s B- credit rating, removes review status

Fitch reaffirms Pakistan’s B- credit rating, removes review status