Ratings agency S&P Global raised Pakistan\u2019s sovereign credit rating to \u2018B-\u2019 from \u2018CCC+\u2019 and placed it on a \u2018stable\u2019 outlook on Thursday, saying the country\u2019s finances and reserves had been stabilised by International Monetary Fund (IMF) support.<\/p>\n\n\n\n
\u201cThe stable outlook reflects our expectations that continued economic recovery and government efforts to enhance revenue will stabilise fiscal and debt metrics,\u201d S&P said in a statement on the move.<\/p>\n\n\n\n
\u201cWe also expect that sustained official financing will support Pakistan in meeting its external obligations, and that the country will continue to roll over its commercial credit lines over the next 12 months.\u201d<\/p>\n\n\n\n
Pakistan\u2019s longer-dated international bonds rallied after the upgrade, with the 2051 maturity gaining 1.6 cents to be bid at 84.85 cents on the dollar, according to Tradeweb data.<\/p>\n\n\n\n
The 2031 and 2036 maturities also gained around 1 cent, while shorter-dated maturities posted smaller gains.<\/p>\n\n\n\n
Last week, Finance Minister Muhammad Aurangzeb urged<\/a> the leading US rating agency \u2014 Moody\u2019s \u2014 to improve Pakistan\u2019s credit rating and help its return to international capital markets at favourable conditions.<\/p>\n\n\n\n Moody\u2019s had upgraded<\/a> Paki\u00adstan\u2019s credit rating by one notch in August 2024 to Caa2 from Caa3 (downgraded<\/a> in February 2023 due to suspension of the IMF programme) and changed its outlook to positive from stable for improving macroeconomic conditions, including liquidity and external position from very weak levels.<\/p>\n\n\n\n Global ratings agency Fitch had upgraded<\/a> Pakistan\u2019s foreign currency credit rating to \u2018B-\u2019 from \u2018CCC+\u2019 in April, citing increased confidence in the country\u2019s progress on narrowing its budget deficits.<\/p>\n\n\n\n