Moody's lifts Pakistan sovereign rating to B3 from Caa1, cites governance improvement and easing of external risk
Global ratings agency Moody’s lifted Pakistan’s sovereign rating to ‘B3’ from ‘Caa1’ on Monday, citing improvements in governance and easing external vulnerability risks. The agency maintained the country’s outlook at ‘stable’. “We expect the recent improvement in Pakistan’s debt affordability to be durable, underpinned by sustained macroeconomic stability,” the agency said in a statement. The…
Moody's Ratings Agency has upgraded Pakistan's sovereign credit rating to 'B3' from 'Caa1' on Monday, highlighting advancements in governance and a reduction of external vulnerabilities. The agency has kept the country's outlook as 'stable'. Moody's stated their expectation that the recent enhancement in Pakistan's debt affordability would persist, supported by ongoing macroeconomic stability.
This upgrade occurred just a month after S&P Global Ratings raised Pakistan's long-term sovereign credit rating to 'B' from 'B-', citing a better external position and gradual macroeconomic stabilization, while also assigning a stable outlook. A sovereign credit rating is a measure of a nation's financial health for foreign investors, evaluating its creditworthiness or the risk associated with lending to the country based on its capacity to repay debts.
Upgrading this rating increases global lenders' confidence in the economy, facilitating foreign investment and enabling the country to borrow funds under more favorable conditions.
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