US-based rating agency Fitch Ratings has assigned a ‘B-‘ (stable) rating to the upcoming foreign currency bonds being issued by Pakistan.

According to Fitch Ratings, the rating is in line with the already assessed long-term rating of the Pakistani foreign currency issuer (IDR) at ‘B-‘ with a stable outlook.

Fitch re-assessed Pakistan’s long-term IDR in foreign and local currency on August 17, 2020.

The proposed bond rating is sensitive to any change in Pakistan’s long-term foreign currency IDR. Below are the sovereign rating sensitivity ratings published in the August 2020 rating comments.

Fitch Ratings indicated that the main factors that, individually or collectively, could trigger a positive rating / improvement are:

• External financing: continue to implement adequate policies to help rebuild foreign exchange reserves and mitigate the risks of external financing. Fiscal consolidation: sustained fiscal consolidation, for example, through structural improvements in income, sufficient to reduce the debt-to-GDP ratio in the medium term. • In general: Continuous improvement of the business environment, helping to improve medium-term growth and export prospects.

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