Regulatory Alerts2025-09-30
Added · Updated
Capital Preservation Rating Assessment Framework
PACRA establishes a Capital Preservation Rating framework that assigns CP1 through CP5 designations based on the certainty of timely principal repayment for debt instruments and mutual funds. The framework mandates comprehensive surveillance at least every six months and defines specific conditions for rating suspension, withdrawal, or harmonization following methodological revisions. Because these ratings rely on actual performance rather than forward-looking projections, PACRA explicitly excludes Outlook and Rating Watch modifiers while maintaining standard liability disclaimers for published opinions.
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