Moody's moves Pakistan out of default danger

ISLAMABAD:

Moody's on Wednesday upgraded Pakistan's credit rating to the speculative grade of Caa1, lifting it from the brink of default, and noted that while debt affordability has improved, it remains the weakest among peers.

The rating agency — one of the world's top three — raised Pakistan's standing for the first time in a year and assigned a "stable" outlook, citing overall improvements in the country's external and fiscal positions. Pakistan had been at serious risk of default less than two years ago.

The global credit rating agency has acknowledged the efforts that the government put in the past over one-and-a-half years to stabilise the economy.

"Moody's Ratings has upgraded the Government of Pakistan's local and foreign currency issuer and senior unsecured debt ratings to Caa