Fitch upgrades Pakistan’s rating to ‘CCC+’ from ‘CCC’

ISLAMABAD: Fitch Ratings has raised Pakistan’s Long-Term Foreign-Currency Issuer Default Rating to ‘CCC+’ from ‘CCC’.

Fitch stated that the upgrade signifies increased confidence in the ongoing availability of external financing, given Pakistan’s recent staff-level agreement with the IMF on a new 37-month, seven billion dollar Extended Fund Facility.Political Uncertainty Casts Shadow Over IMF Deal: Fitch

The agency noted that effective performance under the previous, shorter-term IMF arrangement enabled Pakistan to reduce fiscal deficits and replenish foreign exchange (FX) reserves, with further enhancements anticipated.