Kathmandu. Global rating agency S&P Global Ratings has warned that hostilities between India and Pakistan pose a risk to the financial credibility of the two countries and that any extension to the war will adversely affect sovereign credit support.
S&P, which has placed Triple B minus india with a positive outlook and Pakistan on a ‘triplese plus’ (stable outlook), said, “In the current scenario, it does not see any immediate impact on sovereign credit ratings and expects tensions to remain high over the next two to three weeks.” This points to the possibility of significant additional military actions from both sides.
S&P Global Ratings said in a statement, “The escalation of hostilities between India and Pakistan has increased regional financial credit risk, especially for the two sovereigns involved in the war.”
In response to the Pahalgam massacre in Kashmir, the Indian Army carried out air strikes at nine different places in Pakistan and Pakistan-occupied Kashmir at midnight on Wednesday. Since then, there has been a series of ground and air strikes between the two sides.
