Moody’s Upgrades Pakistan’s Credit Rating To B3 From Caa1, Outlook Stable

Moody's Ratings has upgraded Pakistan's long term foreign and local currency debt ratings by two notches to B3 from Caa1, giving the country's creditworthiness a significant boost while retaining a stable outlook.

Key points

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• Pakistan's ratings from the three major international agencies now stand at B3 with Moody's, B with S&P Global Ratings and B minus with Fitch Ratings.
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• The latest move places Pakistan at B3 on Moody's rating scale.
• The upgrade covers Pakistan's foreign currency issuer rating and long term local currency debt rating, according to current reporting on the rating action.

Meanwhile, the upgrade covers Pakistan's foreign currency issuer rating and long term local currency debt rating, according to current reporting on the rating action. The stable outlook attached to the previous rating has additionally been retained.

For context, the latest move places Pakistan at B3 on Moody's rating scale. When the agency cited an improving external position and progress under the International Monetary Fund program, the upgrade marks a notable improvement from the Caa1 rating that Moody's had maintained since its August 2025 upgrade. Rs. 1.28 Billion Continued to Dasu Electricity Project Secretly.

Pakistan's ratings from the three major international agencies now stand at B3 with Moody's, B with S&P Global Ratings and B minus with Fitch Ratings. As does Fitch's, s&P's rating carries a stable outlook.

When Moody's had raised the country's rating only one notch to Caa1 from Caa2 and changed the outlook to stable from positive, the upgrade additionally marks a significant shift from Pakistan's position a year earlier. While warning that Pakistan remained dependent on timely financing from official partners, at that time, the agency pointed to improving foreign exchange reserves, IMF backed reforms and a strengthening external position. Stay Connected with ProPakistani.

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Taken together, the developments around moody's Upgrades Pakistan's Credit Rating To B3 From Caa1, Outlook Stable point to a situation that is still moving, and the coming days should bring more clarity.