This report does not constitute a rating action. SINGAPORE (S&P Global Ratings) May 7, 2025--The outbreak of hostilities between India and Pakistan has increased regional credit risks, especially for the two sovereigns involved. Our base case is for the intense military actions to be temporary, which will give way to a longer period of contained and sporadic confrontations. In this scenario, we see no immediate impact on our sovereign credit ratings on India (BBB-/Positive/A-3) and Pakistan (CCC+/Stable/C). Nevertheless, the situation raises the specter of miscalculations and accidental clashes that could escalate well beyond the intentions of both sides. Such a scenario would materially worsen credit risks. We anticipate tensions to remain high over the next two to three weeks, with
