Due to improvements in macroeconomic conditions, Moody’s Ratings raised Pakistan’s senior unsecured debt and local and foreign currency issuer ratings to Caa2 from Caa3, the company announced in a release on Tuesday.
Additionally, we raised the senior unsecured MTN program’s rating from (P)Caa3 to (P)Caa2. In a statement, the rating agency stated that the Government of Pakistan’s outlook has shifted from stable to positive at the same time.
Pakistan’s improving macroeconomic circumstances, along with somewhat improved government liquidity and external positions from extremely low levels, are reflected in the upgrading to Caa2.
As a result, Moody’s says Pakistan’s default risk has decreased to a level compatible with a Caa2 rating.
