The New York-based credit rating company Moody's Investors Service has lowered Pakistan's local and foreign currency, senior unsecured debt, and rating from B3 to Caa1&nbsp;due to heightened risks associated with government liquidity, external vulnerability, and debt sustainability.&nbsp; 
&nbsp; 
In the midst of Pakistan's devastating floods, the New York-based rating agency stated that "the outlook remains negative," according to Dawn. For the foreseeable future, Pakistan's credit situation will continue to be very poor due to its long-standing issue with debt affordability.&nbsp; 
&nbsp; 
After seven years, the country is now in the C-category due to the relegation (March 2015). 
&nbsp; 
Pakistan vehemently disagreed with Moody's downgrade decision, claiming it was made unilaterally, was based on unreliable data, and did not accurately reflect the situation because of discrepancies and gaps in the available data.&nbsp; 
&nbsp; 
Due to a delay in a contract with the International Monetary Fund (IMF) for an economic bailout, Moody's also cut Pakistan's outlook in June from stable to negative.&nbsp; 
&nbsp; 
Dawn newspaper&nbsp;quoted a statement from Moody's, "The decision to change the outlook to negative is driven by Pakistan's heightened external vulnerability risk and uncertainty around the sovereign's ability to secure additional external financing to meet its needs."&nbsp; 
&nbsp; 
During the first 10 months (July to April) of the current fiscal year, Pakistan's current account deficit increased to USD 13.8 billion from a deficit of USD 543 million a year earlier.

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The IMF reports that Pakistan's foreign exchange reserves decreased to USD 9.7 billion at the end of April, which is only enough to pay for imports for less than two months. In comparison, at the end of July of the previous year, there were USD 18.9 billion in reserves.&nbsp; 
&nbsp; 
For the current fiscal year, Moody's predicted that the current account deficit would be 4.5–5 per cent of GDP, somewhat more than the government had anticipated.&nbsp; 
&nbsp; 
In addition, Pakistan's next elections are scheduled for the middle of 2023. According to Moody's, it will be challenging for political parties to consistently execute major revenue-raising measures in the lead-up to the elections, especially in an environment with rising inflation. 
&nbsp; 
(with inputs from agencies) 
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The New York-based credit rating company Moody's Investors Service has lowered Pakistan's local and foreign currency, senior unsecured debt, and rating from B3 to Caa1 due to heightened risks associated with government liquidity, external vulnerability, and debt sustainability.

The New York-based credit rating company Moody's Investors Service has lowered Pakistan's local and foreign currency, senior unsecured debt, and rating from B3 to Caa1 due to heightened risks associated with government liquidity, external vulnerability, and debt sustainability. In the midst of Pakistan's devastating floods, the New York-based rating agency stated that "the outlook remains negative," according to Dawn. For the foreseeable future, Pakistan's credit situation will continue to be very poor due to its long-standing issue with debt affordability. After seven years, the country is now in the C-category due to the relegation (March 2015). Pakistan vehemently disagreed with Moody's downgrade decision, claiming it was made unilaterally, was based on unreliable data, and did not accurately reflect the situation because of discrepancies and gaps in the available data. Due to a delay in a contract with the International Monetary Fund (IMF) for an economic bailout, Moody's also cut Pakistan's outlook in June from stable to negative. Dawn newspaper quoted a statement from Moody's, "The decision to change the outlook to negative is driven by Pakistan's heightened external vulnerability risk and uncertainty around the sovereign's ability to secure additional external financing to meet its needs." During the first 10 months (July to April) of the current fiscal year, Pakistan's current account deficit increased to USD 13.8 billion from a deficit of USD 543 million a year earlier. Also Read: Ukraine mocks Kremlin over blast on 'key' bridge crucial to Russian war effort The IMF reports that Pakistan's foreign exchange reserves decreased to USD 9.7 billion at the end of April, which is only enough to pay for imports for less than two months. In comparison, at the end of July of the previous year, there were USD 18.9 billion in reserves. For the current fiscal year, Moody's predicted that the current account deficit would be 4.5–5 per cent of GDP, somewhat more than the government had anticipated. In addition, Pakistan's next elections are scheduled for the middle of 2023. According to Moody's, it will be challenging for political parties to consistently execute major revenue-raising measures in the lead-up to the elections, especially in an environment with rising inflation. (with inputs from agencies)

Moody's downgrades Pakistan's economic outlook to negative, gives 'C rating' after seven years

Rating agency Moody's Investor Service has downgraded cash-strapped Pakistan’s outlook from stable to negative, citing ‘heightened external vulnerability’ and uncertainty around securing external financing to meet the country's needs, a media report has said.

“Moody`s assesses that Pakistan’s external vulnerability risk has been amplified by rising inflation, which puts downward pressure on the current account, the currency and already thin foreign exchange reserves, especially in the context of heightened political and social risk," the statement said.

Moody’s report added that the country's ‘weak institutions and governance strength’ had added uncertainty around the future direction of macroeconomic policy, including whether&nbsp;Pakistan&nbsp;would complete the IMF Extended Fund Facility (EFF) programme and maintain a credible policy path that supports further financing.

However, it affirmed the ‘B3’ local and foreign currency long-term issuer and senior unsecured debt ratings.

Watch |&nbsp;Moody's lowers Pakistan outlook to negative over IMF delay

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“The decision to affirm the B3 rating reflects Moody's assumption that, notwithstanding the downside risks mentioned above, Pakistan will conclude the seventh review under the IMF EFF programme by the second half of this calendar year, and will maintain its engagement with the IMF, leading to additional financing from other bilateral and multilateral partners,” it said.

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Moody’s affirmed that Pakistan will be able to close its financing gap for the next couple of years.

“The B3 rating also incorporates Moody`s assessment of the scale of Pakistan’s economy and robust growth potential, which will provide the economy with some capacity to absorb shocks.

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"These credit strengths are balanced against Pakistan`s fragile external payments position, weak governance and very weak fiscal strength, including very weak debt affordability," the statement said.

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Rating agency Moody's Investor Service has downgraded cash-strapped Pakistan’s outlook from stable to negative, citing ‘heightened external vulnerability’ and uncertainty around securing external financing to meet the country's needs, a media report has said.

Rating agency Moody's Investor Service has downgraded cash-strapped Pakistan’s outlook from stable to negative, citing ‘heightened external vulnerability’ and uncertainty around securing external financing to meet the country's needs, a media report has said. “Moody`s assesses that Pakistan’s external vulnerability risk has been amplified by rising inflation, which puts downward pressure on the current account, the currency and already thin foreign exchange reserves, especially in the context of heightened political and social risk," the statement said. Moody’s report added that the country's ‘weak institutions and governance strength’ had added uncertainty around the future direction of macroeconomic policy, including whether Pakistan would complete the IMF Extended Fund Facility (EFF) programme and maintain a credible policy path that supports further financing. However, it affirmed the ‘B3’ local and foreign currency long-term issuer and senior unsecured debt ratings. Watch | Moody's lowers Pakistan outlook to negative over IMF delay “The decision to affirm the B3 rating reflects Moody's assumption that, notwithstanding the downside risks mentioned above, Pakistan will conclude the seventh review under the IMF EFF programme by the second half of this calendar year, and will maintain its engagement with the IMF, leading to additional financing from other bilateral and multilateral partners,” it said. Also read | Turkey’s annual inflation spirals to 24-year high at 73% Moody’s affirmed that Pakistan will be able to close its financing gap for the next couple of years. “The B3 rating also incorporates Moody`s assessment of the scale of Pakistan’s economy and robust growth potential, which will provide the economy with some capacity to absorb shocks. Also read | Heading for turmoil? Pak hikes prices of petroleum products, power massively "These credit strengths are balanced against Pakistan`s fragile external payments position, weak governance and very weak fiscal strength, including very weak debt affordability," the statement said. Watch WION's live TV here:

Moody's downgrades Pakistan's outlook from stable to negative over IMF delay

Moody’s Investors Service on Monday projected the Indian economy to shrink 3.1 per cent in 2020

Moody’s projects Indian economy to shrink 3.1% in 2020

Moody's Investors Service on Wednesday downgraded Delhi International Airport Ltd's (DIAL's) corporate family rating and senior secured ratings to Ba3 from Ba2.

At the same time, Moody's downgraded DIAL's baseline credit assessment to Ba3 from Ba2.

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The ratings have also been placed on review for further downgrade. The outlook has been changed to rating under review from stable.

"The rating action reflects the worsening coronavirus outbreak and the increasingly stringent travel restrictions imposed both in India and globally, including ongoing measures introduced by the government," said Moody's.

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"The downgrade to Ba3 reflects our expectation of a sharp decline in passenger and aircraft traffic at Delhi Airport in the coming months and the uncertainty over the timing and extent of a recovery, which coincides with increased debt issuance as the airport enters the peak stage of its Rs 9,800 crore expansion project," said Moody's Vice President and Senior Analyst Spencer Ng.

The confluence of these factors will severely weaken Delhi Airport's credit metrics, under Moody's base case scenario of DIAL continuing to levy the minimum tariff permitted under the base airport charge regime over the control period through to March 2024, with no ability to recoup lost revenue through tariff adjustments.

The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets.

Moody's said the combined credit effects of these developments are unprecedented. The airport sector has been one of the sectors most significantly affected by the shock given its sensitivity to consumer demand and sentiment.

More specifically, the weaknesses in DIAL's credit profile, including its exposure to falling passenger traffic have left it vulnerable to shifts in market sentiment in these unprecedented operating conditions, and DIAL remains vulnerable to the outbreak continuing to spread.

DIAL's Ba3 ratings continue to reflect the airport's strong market position and the fact that it predominantly caters to domestic travel, said Moody's.

Moody's Investors Service on Wednesday downgraded Delhi International Airport Ltd's (DIAL's) corporate family rating and senior secured ratings to Ba3 from Ba2. At the same time, Moody's downgraded DIAL's baseline credit assessment to Ba3 from Ba2.

Moody's Investors Service on Wednesday downgraded Delhi International Airport Ltd's (DIAL's) corporate family rating and senior secured ratings to Ba3 from Ba2. At the same time, Moody's downgraded DIAL's baseline credit assessment to Ba3 from Ba2. Also read: IndiGo claims its crew facing social ostracisation owing to their travel history The ratings have also been placed on review for further downgrade. The outlook has been changed to rating under review from stable. "The rating action reflects the worsening coronavirus outbreak and the increasingly stringent travel restrictions imposed both in India and globally, including ongoing measures introduced by the government," said Moody's. Also read: Delhi airport takes measures to tackle coronavirus scare "The downgrade to Ba3 reflects our expectation of a sharp decline in passenger and aircraft traffic at Delhi Airport in the coming months and the uncertainty over the timing and extent of a recovery, which coincides with increased debt issuance as the airport enters the peak stage of its Rs 9,800 crore expansion project," said Moody's Vice President and Senior Analyst Spencer Ng. The confluence of these factors will severely weaken Delhi Airport's credit metrics, under Moody's base case scenario of DIAL continuing to levy the minimum tariff permitted under the base airport charge regime over the control period through to March 2024, with no ability to recoup lost revenue through tariff adjustments. The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets. Moody's said the combined credit effects of these developments are unprecedented. The airport sector has been one of the sectors most significantly affected by the shock given its sensitivity to consumer demand and sentiment. More specifically, the weaknesses in DIAL's credit profile, including its exposure to falling passenger traffic have left it vulnerable to shifts in market sentiment in these unprecedented operating conditions, and DIAL remains vulnerable to the outbreak continuing to spread. DIAL's Ba3 ratings continue to reflect the airport's strong market position and the fact that it predominantly caters to domestic travel, said Moody's.

Moody's downgrades Delhi Airport's ratings to Ba3, on review for further downgrade

Rating agency Moody's on Thursday slashed its outlook for German banks from "stable" to "negative", warning their profitability and creditworthiness would "decline" in the coming months.

"Banks' weak profitability will decline further as net interest income falls" amid low or negative interest rates set by the European Central Bank, Moody's vice-president Bernhard Held said in a statement.

While banks must for now set aside little cash to cover the risk of borrowers falling behind on payments, such charges are "unsustainably low", he judged.

Especially smaller banks that rely on customers' deposits for their funding are seeing profits sapped by low rates, which have prompted many bosses to blast the ECB for the policy.

Moody's noted that German banks "have had very limited success in improving their high cost-to-income ratios", spending around 80 euro cents for each euro of revenue in 2018.

Meanwhile, risk-averse depositors prefer to heap up cash in savings accounts rather than opt for riskier investments like stocks -- building deposits up to 40 percent of the sector's assets.

As banks cannot always find ways -- such as lending -- to put that cash to work in the real economy, they deposit large amounts with the ECB, which presently inflicts a negative interest rate of -0.5 per cent.

Banks have even been attempting to fend off new clients from opening accounts, passing on the negative rates to savers.

One Bavarian cooperative bank recently became the first to charge a negative rate from the first euro deposited in a savings account.

Rating agency Moody's on Thursday slashed its outlook for German banks from "stable" to "negative", warning their profitability and creditworthiness would "decline" in the coming months.

Rating agency Moody's on Thursday slashed its outlook for German banks from "stable" to "negative", warning their profitability and creditworthiness would "decline" in the coming months. "Banks' weak profitability will decline further as net interest income falls" amid low or negative interest rates set by the European Central Bank, Moody's vice-president Bernhard Held said in a statement. While banks must for now set aside little cash to cover the risk of borrowers falling behind on payments, such charges are "unsustainably low", he judged. Especially smaller banks that rely on customers' deposits for their funding are seeing profits sapped by low rates, which have prompted many bosses to blast the ECB for the policy. Moody's noted that German banks "have had very limited success in improving their high cost-to-income ratios", spending around 80 euro cents for each euro of revenue in 2018. Meanwhile, risk-averse depositors prefer to heap up cash in savings accounts rather than opt for riskier investments like stocks -- building deposits up to 40 percent of the sector's assets. As banks cannot always find ways -- such as lending -- to put that cash to work in the real economy, they deposit large amounts with the ECB, which presently inflicts a negative interest rate of -0.5 per cent. Banks have even been attempting to fend off new clients from opening accounts, passing on the negative rates to savers. One Bavarian cooperative bank recently became the first to charge a negative rate from the first euro deposited in a savings account.

Moody's sees 'negative' outlook for German banks

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Moody's downgrades Pakistan's economic outlook to negative, gives 'C rating' after seven years

Moody's downgrades Pakistan's outlook from stable to negative over IMF delay

Moody’s projects Indian economy to shrink 3.1% in 2020

Moody's downgrades Delhi Airport's ratings to Ba3, on review for further downgrade

Moody's sees 'negative' outlook for German banks