Moody's slashes Pakistan's rating to Caa3

Global ratings agency Moody's cut Pakistan's sovereign credit rating to 'Caa3' from 'Caa1' on Tuesday, over the country's increasingly fragile liquidity and external position.

Pakistan's foreign exchange reserves are far less than necessary to cover its imports and external debt obligations over the immediate and medium term, Moody's noted.

The agency's raised Pakistan's outlook to stable from negative.