Moody's assigns B3 rating to Pakistan's sukuk offering

News Image

By MG News | January 18, 2022 at 01:24 PM GMT+05:00

0:00

January 18, 2022 (MLN): Moody's Investors Service (Moody's) has assigned a B3 backed senior unsecured rating to the proposed US dollar-denominated trust certificates (Sukuk) issuance by the government of Pakistan through the Pakistan Global Sukuk Programme Company Limited, a special purpose vehicle, which is wholly-owned by the govt and whose debt and trust certificate issuances are, in Moody's view, ultimately the obligation of the country, said a press release issued today.

The assigned rating to the Sukuk mirrors Pakistan's current issuer rating. According to the terms and conditions available to Moody, the trust certificates will constitute direct, unconditional, and unsubordinated obligations of the country.

In Moody's opinion, the payment obligations represented by the securities to be issued by the company rank pari passu with all of the country's current and future senior unsecured external debt.

Proceeds from the Sukuk issuance will be used by the company to purchase assets from the National Highway Authority. The amounts subsequently received by Pakistan in consideration for the transaction will be used for general budgetary purposes.

With regards to ratings rationale, Pakistan's B3 issuer rating is underpinned by its relatively large economy and robust long-term growth potential, as well as ongoing reforms that may strengthen policy effectiveness over time. Credit challenges include structural constraints to export competitiveness, the government's high debt burden and a narrow revenue base that reduces fiscal flexibility and weakens debt affordability, as well as political risks that can influence the reform trajectory.

Moody's

 

 

 

 

 

Related News

Name Price/Vol %Chg/NChg
KSE100 133,226.03
102.55M
-0.11%
-144.12
ALLSHR 82,999.08
376.68M
-0.10%
-82.07
KSE30 40,624.02
33.84M
-0.20%
-81.28
KMI30 192,181.21
43.08M
-0.21%
-399.47
KMIALLSHR 55,790.00
214.22M
-0.08%
-45.72
BKTi 36,253.86
5.54M
-0.17%
-63.31
OGTi 28,449.84
2.99M
-0.33%
-93.12
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 108,580.00 108,880.00
107,680.00
125.00
0.12%
BRENT CRUDE 69.44 69.50
69.03
-0.14
-0.20%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
2.90
3.07%
ROTTERDAM COAL MONTHLY 106.00 106.75
106.00
0.25
0.24%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 67.77 67.97
67.40
-0.16
-0.24%
SUGAR #11 WORLD 16.25 16.46
16.07
-0.13
-0.79%

Chart of the Day


Latest News
July 08, 2025 at 10:42 AM GMT+05:00

Pakistan moves to regulate crypto with PVARA approval


July 08, 2025 at 09:41 AM GMT+05:00

DFML assembles over 300 EVs for delivery


July 08, 2025 at 09:31 AM GMT+05:00

NBP issues foreign exchange rates



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg