Dawn
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04:00 Jan 22, 2026
ISLAMABAD: Fitch Ratings, one of the world’s top three agencies, on Wednesday affirmed Pakistan’s long-term debt ratings at ‘B-’ (B-negative), which it had upgraded in April last year, and assigned a Recovery Rating of ‘RR4’ following the removal of the ratings from Under Criteria Observation (UCO). In a statement issued from its regional office in Hong Kong, the agency said the rating actions reflect the application of Fitch’s new Sovereign Rating Criteria, effective September 2025, and the inclusion of recovery assumptions into sovereign debt ratings for the first time. The recovery rating RR4 denotes ‘average’ recovery expectation from default in a scale of six categories, starting from RR1 for outstanding, RR2 for superior, RR3 for good and RR4 for average. This is followed by RR5 for below average and RR6 for poor. The senior unsecured long-term debt ratings of Pakistan and The Pakistan Global Sukuk Programme Company Ltd are equalised with Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR)...