While much uncertainty still surrounds the new peace deal signed between the Taliban and the US administration, bond markets today pummeled the hard line Afghan Islamic group as Standard & Poor’s and Moody’s downgraded their credit rating to a “D-” due to the drag of the Trump brand on its future offerings.
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S&P said its downgrade “reflects our view that the Taliban’s trajectory has weakened and execution risks are elevated as the group pursues a deal with Trump against the advice of many banking and financial experts”.
Moody’s added: “the Taliban faces many headwinds among the large terrorist groups, and the deal announced today will only further hamper its efforts at a turnaround, due to the unknown entanglements with the Trump brand as it moves forward.”
While a Taliban spokesman declined to comment on the downgrade, he said privately the group was not surprised, and had resisted getting involved with the president for many years. The Taliban later announced it will begin liquidating its holdings in real estate and livestock in the coming months to shore up what looks to be an exceedingly challenging fiscal 2021.
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