Moody’s rates Pakistan bond B3

Moody's Investors Service said it assigned a definitive rating of B3 to the Government of Pakistan’s announced global bond offering.

The outlook is stable.

The definitive rating on this debt confirms the provisional rating assigned Sept. 18, Moody’s said.

Pakistan’s B3 issuer rating reflects its moderate economic strength with a supply-constrained economy that has been resistant to structural change, the agency said.

Although the scale of the economy is relatively large, Pakistan’s per-capita income level globally is relatively low, Moody’s said.

Implementation of the China-Pakistan Economic Corridor will bolster growth over time through investment in transportation and a power-generation infrastructure, the agency said.

Institutional effectiveness has been hampered by factious relations between the executive, military and judicial branches of government, Moody’s added.

These drawbacks constrain policy effectiveness, the agency said.

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