IMF Agreement positive for credit rating – MOODY’s

IMF Agreement positive for credit rating – MOODY’s

International Monetary Fund’s staff-level agreement to provide $5.3b assistance to Pakistan (Caa1negative) will be credit positive, Moody’s Investors Service says in its Credit Outlook report today.

* The aid would help nation re-finance $2.1b of loan repayment   due to the IMF this year, and avert a balance-of-payment    crisis in Pakistan, according to Moody’s

* Moody’s says it expects extended fund facility (EFF) program    to boost Pakistan’s reserve buffer to $8.3b in fiscal 2014 from previously projected $6.5b

* Additional reserves would lower Moody’s External   Vulnerability Indicator for Pakistan to 77%, from the 100%    Moody’s had previously anticipated: Moody’s