[DAWN] IN what is likely to be the first in a string of ratings actions, Moody’s has downgraded the outlook on Pakistain’s credit rating from stable to negative.
| Couldn’t happen to a more deserving society. |
The global rating agency gives "heightened external vulnerability risk" as the main reason, going on to say that "[f]oreign exchange reserves have fallen to low levels and, absent significant capital inflows, will not be replenished over the next 12-18 months".
The situation makes it difficult for the government to raise more foreign exchange through international bonds, which increases "government liquidity risks". |