Regulatory Alerts2025-07-15
Added · Updated
Government Supported Entities Rating Methodology
VIS Credit Rating Company Limited issued this July 2025 methodology to standardize the credit rating of Government Supported Entities (GSEs) in Pakistan through a two-step assessment of standalone financial strength and government support. The framework evaluates explicit guarantees and implicit backing by analyzing key factors including strategic mandate, ownership levels, financial capacity, social costs, and the supporting government's credit standing. Additionally, it incorporates recent updates on state-owned enterprise classifications under the 2023 Ownership and Management Policy, while providing specific guidance for joint ventures with foreign governments and post-privatization rating transitions.
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