FX.co ★ Moody's Raises Pakistan Rating to Caa1

Moody's Global Ratings announced on Wednesday an upgrade to Pakistan's credit rating, moving it to "Caa1" from "Caa2", with a revised outlook now rated as stable rather than positive. This improvement reflects Pakistan's strengthening external financial position. The rating agency noted that "the upgrade to Caa1 reflects Pakistan’s enhanced external position, bolstered by its ongoing reform efforts under the IMF Extended Fund Facility (EFF) program." This upgrade by Moody’s follows a similar action by S&P Global Ratings, which increased Pakistan's rating on July 24 to B- from CCC+. Earlier in April, Fitch Ratings also improved Pakistan’s rating to B- from CCC+, with both S&P and Fitch maintaining a stable outlook. The country attributes its economic recovery to the USD 7 billion IMF bailout, which has been pivotal in stabilizing the economy.