Global rating agency Moody’s on Wednesday upgraded Pakistan’s credit rating by one notch to Caa1 from Caa2, citing Islamabad’s improving external position, and changed its outlook from positive to stable. Moody’s Ratings is a credit rating system that evaluates the creditworthiness of borrowers, such as governments, corporations, or financial instruments. According to its website, the agency uses letter grades (Aaa, Aa, A, Baa, etc) to indicate the likelihood of timely repayment, with Aaa being the highest quality and C the lowest. These ratings help investors assess risk before lending or investing. Within this scale, Caa1, Caa2, and Caa3 all fall into the “Caa” category, signalling very high credit risk and poor standing. Caa1 is the highest within this group (slightly less risky), Caa2 is one notch lower, and Caa3 is the last, meaning the greatest vulnerability to default among the three. “Moody’s Ratings (Moody’s) has today upgraded the Government of Pakistan’s local and foreign currency issuer and senior...