Global rating agency Moody’s on Wednesday raised Pakistan’s credit rating by one notch to Caa2 from Caa1.
According to a report by the British news agency, the international rating agency (one of the world’s three largest rating companies) has issued Pakistan’s rating with a stable outlook, citing Islamabad’s improving external financial position. The agency had earlier raised Pakistan’s local and foreign currency issuer and senior unsecured debt ratings to Caa2 from Caa3 on August 28, 2024.
In late February 2024 (immediately after the general elections), Moody’s had maintained Pakistan’s long-term credit rating at Caa3 and said that political risks were elevated after the highly controversial general elections.
Finance Minister Muhammad Aurangzeb had urged Moody’s to upgrade Pakistan’s current Caa2 credit rating during an online meeting in July.
Speaking at an event in Islamabad, Muhammad Aurangzeb said that international financial institutions were appreciating Pakistan’s economic reforms and said he hoped that a third agency (apparently referring to Moody’s) would do the same soon.
