‘Controversial’ polls, ‘weak’ coalition govt to pose economic challenges: Moody’s

ISLAMABAD: Moody’s Investors Service on Tuesday kept Pakistan’s ratings unchanged at ‘Caa3’ with a stable outlook but highlighted that significantly high risks of liquidity and external vulnerability challenges following highly controversial elections, severely constrained decision-making capacity of the coalition government-in-waiting. The international rating agency — one of the top three global rating firms — said it had completed last week review of Pakistan rating assessments but neither it was announcing a credit rating action, nor an indication of whether or not a credit rating action is likely in the near future. “Pakistan’s ratings, including its Caa3 long-term issuer rating, with stable outlook remain unchanged,” it said. The agency had downgraded the country’s rating to Caa3 from Caa1 in February last year, owing to challenges with the IMF programme and the resultant depletion of foreign exchange reserves.