Moody's upgrades Pakistan credit rating

14-Aug-2025

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Moody’s Ratings on August 13 upgraded Pakistan’s credit rating to ‘Caa1’ from ‘Caa2’, indicating an improvement in the country’s financial situation. The ratings agency also revised the outlook for the Government of Pakistan to stable from positive.

The Government of Pakistan’s local and foreign currency issuer and senior unsecured debt ratings have been upgraded to Caa1 from Caa2, Under Moody’s long-term obligation rating system, a ‘Caa’ rating suggests poor standing and very high credit risk, while the numeric identifier reflects the higher end of its category.

“The upgrade to Caa1 reflects Pakistan’s improving external position, supported by its progress in reform implementation under the International Monetary Fund (IMF) Extended Fund Facility (EFF) program,” Moody’s said.