By BR Web Desk
Moody鈥檚 Ratings (Moody鈥檚) on Wednesday upgraded the Government of Pakistan鈥檚 local and foreign currency issuer and senior unsecured debt ratings to Caa1 from Caa2.
The global rating agency also upgraded the rating for the senior unsecured MTN programme to (P)Caa1 from (P)Caa2.
鈥淐oncurrently, we changed the outlook for the Government of Pakistan to stable from positive,鈥 it said.
鈥淭he upgrade to Caa1 reflects Pakistan鈥檚 improving external position, supported by its progress in reform implementation under the International Monetary Fund (IMF) Extended Fund Facility (EFF) program,鈥 it said.
The development comes days after Fitch Ratings and S&P Global upgraded Pakistan鈥檚 credit ratings.
In its statement, Moody鈥檚 said that Pakistan鈥檚 foreign exchange reserves are likely to continue to improve, although the country will remain dependent on timely financing from official partners.
鈥淢eanwhile, the sovereign鈥檚 fiscal position is also strengthening from very weak levels, supported by an expanding tax b