Pakistan’s Debt Rating Gets a Boost

Moody's raised its outlook on Pakistan's sovereign B2 foreign currency debt rating, which is five rungs below investment grade and the same as Indonesia's, from "stable." Pakistan's $100 billion economy is forecast to expand 7 percent in the year to June 30 after growing 8.4 percent in the previous 12 months, the fastest pace in 20 years. Pakistan's credit rating outlook was raised Wednesday to "positive" by Moody's Investors Service, citing economic growth and remittances from overseas workers. The increase in the nation's ratings outlook will improve Pakistan's overseas image and help the government to sell foreign currency bonds, analysts said. "Pakistan is becoming more attractive to overseas investors," said Mohammed Sohail, director of research at Jahangir Siddiqui Capital Markets in Karachi.