Moody | Pakistan

Global rating agency Moody’s on Wednesday upgraded Pakistan’s credit rating by one notch to Caa1 from Caa2, citing Islamabad’s improving external position, and changed its outlook from positive to stable. Moody’s Ratings is a credit rating system that evaluates the creditworthiness of borrowers, such as governments, corporations, or financial instruments. According to its website, the agency uses letter grades (Aaa, Aa, A, Baa, etc) to indicate the likelihood of timely repayment, with Aaa being the highest quality and C the lowest. These ratings help investors assess risk before lending or investing. Within this scale, Caa1, Caa2, and Caa3 all fall into the “Caa” category, signalling very high credit risk and poor standing. Caa1 is the highest within this group (slightly less risky), Caa2 is one notch lower, and Caa3 is the last, meaning the greatest vulnerability to default among the three. “Moody’s Ratings (Moody’s) has today upgraded the Government of Pakistan’s local and foreign currency issuer and senior...

Moody’s Ratings on Wednesday upgraded Pakistan’s local and foreign currency issuer and senior unsecured debt ratings from Caa2 to Caa1, while also raising the senior unsecured Medium-Term Note (MTN) programme rating from (P)Caa2 to (P)Caa1.

Moody’s downgraded the US sovereign credit rating on Friday due to concerns about the nation’s growing $36 trillion debt pile in a move that could complicate President Donald Trump’s efforts to cut taxes and send ripples through global markets. Moody’s first gave the United States its pristine “Aaa” rating in 1919 and is the last of the three major credit agencies to downgrade it. “Successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs,” Moody’s said on Friday, as it changed its outlook on the US to “stable” from “negative”. The announcement drew criticism from people close to Trump. Stephen Moore, former senior economic adviser to Trump and an economist at Heritage Foundation, called the move “outrageous”. “If a US backed government bond isn’t triple A-asset then what is?” he told Reuters. White House communications director Steven Cheung reacted to the downgrade via a social media post, singling out Moody’s ...