Fitch | Pakistan

Credit-rating firm Fitch on Monday maintained its long-term foreign-currency issuer default rating on India at ‘BBB-’, citing the country’s strong economic growth and resilient external finances. “India’s economic outlook remains strong relative to peers, even as momentum has moderated in the past two years,” Fitch said in a statement. The agency forecast GDP growth of 6.5 per cent for the fiscal year ending March 2026 (FY26), unchanged from FY25, and well above the ‘BBB’ median of 2.5pc. Fitch’s rating comes days after S&P Global Ratings lifted its sovereign credit rating on India, citing strong economic growth, marking its first upgrade in 18 years. Economic Affairs Secretary Anuradha Thakur had then said she expects other rating agencies to take note of the factors behind S&P’s upgrade and follow suit. Domestic demand will remain “solid”, helped by the government’s ongoing capital spending drive and steady private consumption, Fitch said, but flagged that private investment will remain moderate due to risk...

ISLAMABAD: Fitch Ratings on Monday projected improved prospects for Pakistan’s banking sector, citing stabilising macroeconomic indicators, falling inflation, and a return to economic growth. The global credit agency expects Pakistan’s GDP to grow by 3.5pc in FY27, with inflation averaging 5pc — a significant shift from the turmoil and high inflation of recent years. In a brief commentary, Fitch said banks are well-positioned to capitalise on improving operating conditions as macroeconomic headwinds ease. It noted that stronger business volumes, driven by economic recovery and better credit demand, would support banking performance in the near term. The outlook follows Pakistan’s upgraded sovereign credit profile, with Fitch raising its Long-Term Issuer Default Rating (IDR) to ‘B-’/Stable from ‘CCC+’ in April 2025. The upgrade reflects ongoing reforms, fiscal improvement, and greater economic resilience. The agency pointed out that consumer price inflation, which had peaked at 38pc in May 2023, eased to 4.1pc...