ISLAMABAD: Fitch Ratings on Wednesday affirmed Pakistan’s long-term sovereign debt rating at “B-,” keeping the country in high-risk territory but signaling no immediate default threat, and assigned a “RR4” recovery rating, a measure of how much investors might recover if the country were to default, following a review under its updated sovereign rating criteria.
Fitch is one of the world’s three major credit rating agencies and its sovereign ratings are closely watched by investors because they affect a country’s access to international capital markets and the cost of borrowing.
Pakistan’s rating was last upgraded in April 2025 to “B-” from “CCC+,” reflecting improved macroeconomic stability after a period of severe financial stress.
“Fitch Ratings has affirmed Pakistan’s long-term debt ratings at ‘B-’ and assigned a Recovery Rating of ‘RR4,’” the agency said in a statement.
It said the action reflects the application of its new Sovereign Rating Criteria, effective September 2025, and the inclusion of recovery assumptions in sovereign debt ratings for the first time.
