Capital Preservation Rating Assessment Framework

Capital Preservation Rating
Scale
Capital Preservation Rating (CP)
An opinion on the relative certainty of the capital preservation through timely repayment of the original investment as per agreed terms. Scale Long-Term Rating CP1 Very Strong certainty of timely repayment of the original investment as per agreed terms. CP2++ CP2+ CP2 Strong certainty of timely repayment of the original investment as per agreed terms. CP3++ CP3+ CP3 Good certainty of timely repayments of the original investment as per agreed terms. CP4++ CP4+ CP4 Adequate certainty of timely repayment of the original investment as per agreed terms. CP5 Weak certainty of timely repayment of the original investment as per agreed terms. Rating Modifiers | Rating Actions Outlook Being based on actual performance, no Outlook or Rating Watch is assigned to Capital Preservation Ratings. Rating Watch Being based on actual performance, no Outlook or Rating Watch can be assigned to Capital Preservation Ratings. Suspension It is not possible to update an opinion due to lack of requisite information. Opinion should be resumed in foreseeable future. However, if this does not happen within six (6) months, the rating should be considered withdrawn. Withdrawn A rating is withdrawn on a) termination of rating mandate, b) the debt instrument is redeemed, c) the rating remains suspended for six months or d) PACRA finds it impractical to surveil the opinion due to lack of requisite information. Harmonization A change in rating due to revision in applicable methodology or underlying scale. Surveillance: Surveillance on a mutual fund rating opinion is carried out on a periodic basis till it is formally suspended or withdrawn. A comprehensive surveillance of rating opinion is carried out at least once every six months. Disclaimer: PACRA has used due care in preparation of this document. Our information has been obtained from sources we consider to be reliable but its accuracy or completeness is not guaranteed. PACRA shall owe no liability whatsoever to any loss or damage caused by or resulting from any error in such information. Contents of PACRA documents may be used, with due care and in the right context, with credit to PACRA. Our reports and ratings constitute opinions, not recommendations to buy or to sell.