Global rating agency Moody’s on Wednesday upgraded Pakistan’s credit rating by one notch to Caa1 from Caa2.
The international rating agency — one of the top three global rating firms — cited Islamabad’s improving external position and assigned a “stable” outlook to Pakistan’s rating.
The agency had upgraded Pakistan’s local and foreign currency issuer and senior unsecured debt ratings to Caa2 from Caa3 on Aug 28, 2024.
In late February 2024 — shortly after the general elections — Moody’s had retained Pakistan’s long-term credit rating at Caa3, noting that “political risks are high, following a highly controversial general election”.
Finance Minister Muhammad Aurangzeb already urged Moody’s in July to improve Pakistan’s current Caa2 credit rating during a virtual engagement in July.
Speaking at an event in Islamabad earlier today, Aurangzeb pointed out that international financial institutions had hailed Pakistan’s economic reforms and said he was hopeful of “the third agency” — an apparent reference to Moody’s — doing the same soon.
More to follow