Moody's ups Pakistan view to stable

Moody's Investors Service said it changed the outlook for Pakistan's B3 foreign- and local-currency sovereign bond ratings to stable from negative.

Moody's also said it changed to stable from negative the outlooks on the B3 country ceiling for foreign-currency bank deposits and the B1 country ceiling for foreign-currency debt.

The stable outlook was prompted by the recent augmentation of Pakistan's IMF program by $3.2 billion to more than $11 billion, the agency said, and several ongoing policy and structural reforms. Meanwhile, remittance inflows from overseas Pakistanis have remained strong, Moody's said.

These developments avert the likelihood of external payment arrears over the next 12 to 18 months, the agency said, and they provide greater reassurance about the finance-ability of Pakistan's current account and fiscal deficits.

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