The three main rating agencies have raised Pakistan from the distressed 'CCC' range since 2025: Fitch to B- in April 2025, S&P to B in July 2026, its highest S&P rating in about eight years, and Moody's to B3 in August 2026, all citing IMF-backed reforms and stronger reserves.
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Moody's upgraded Pakistan from Caa1 to B3, outlook stable, citing governance, external position and fiscal improvements
Ratings set the cost at which Pakistan can borrow abroad and shape foreign investor appetite, including for US-backed projects. They remain several notches below investment grade, so Pakistan's access to markets is still fragile and tied to the IMF programme.
