Pakistan said on Friday that it “strongly contests” a ratings downgrade by agency Moody’s, adding that it had adequate liquidity and financing arrangements to meet its external liabilities despite being hit by catastrophic floods.
Moody’s cut Pakistan’s sovereign credit rating on Thursday by one notch further into junk territory to Caa1 from B3, making it harder for the country to tap international markets for funds. It cited increased government liquidity and external vulnerability risks in the wake of floods in August that killed more than 1,600 people and caused billions of dollars in damage.
